Moody's drops Interface outlook to negative

Moody's Investors Service said it revised Interface Inc.'s outlook to negative from stable, while affirming all ratings, including its corporate family and probability of default ratings at B1, senior unsecured note rating of B1 and subordinated note rating of B3.

According to the agency, the outlook change to negative reflects Interface's weakened operating performance in the fourth quarter of 2008, and Moody's belief that the severe decline in global spending on building renovation and construction projects will continue through 2009, further pressuring its operating results and credit metrics.

Moody's added that the negative outlook also reflects increasing refinancing risk as its $152.6 senior notes mature Feb. 1, 2010.

Interface's B1 corporate family rating continues to reflect the company's good credit metrics, with modest cushion for adverse fluctuations in the current challenging economic environment, the agency noted.

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