Fitch cuts Maytag debt rating

Fitch cuts Maytag debt rating
 
Date October 26, 2004
Section(s) Business
Brief  
 
Fitch Ratings has downgraded its senior unsecured debt rating for Maytag, dropping the company to junk status.

Maytag fell from a BBB- rating to a BB+ rating, the highest of Fitch’s junk status ratings.

In a statement, Fitch said “The downgrade reflects Maytag‘s weaker than expected operating performance in 2004, driven by ongoing problems in its floor care and commercial product businesses and higher manufacturing costs.”

The statement goes on to say that Maytag “continues to be adversely affected by its high cost structure,” and that its “situation is not expected to meaningfully improve in the foreseeable future.”

Maytag had approximately $996 million of senior unsecured debt as of Oct. 2, according to Fitch.

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