Announcement: Moody’s – Mohawk Industries Inc.: Allegations of accounting improprieties are credit negative
Global Credit Research – 13 Jul 2020
New York, July 13, 2020 — Moody’s Investors Service, (Moody’s) commented that allegations against Mohawk Industries, Inc (Mohawk) of channel stuffing and intentionally overproduced product are credit negative and suggest aggressive business practices and potential corporate governance weaknesses. However, because the company has good liquidity bolstered by recent debt offerings and the allegations will take time to litigate, there is no impact on the company’s Baa1 senior unsecured rating and stable outlook.
For further information please see Moody’s Issuer Comment on Mohawk Industries, Inc. at www.moodys.com
Headquartered in Calhoun, Georgia, Mohawk is a leading producer of floor covering products for residential and commercial applications. Brands include Mohawk, Unilin, Karastan, Lees, Bigelow, Dal-Tile, American Olean, Pergo, Marazzi and Quick-Step. Revenues for the publicly-traded company are approximately $10.0 billion.
This publication does