S&P ups Tandus to positive

Standard & Poor's said it revised the outlook on Tandus Flooring Inc. to positive from stable and affirmed all of the ratings on Tandus, including the B corporate credit rating.

The outlook revision reflects Tandus' improving financial risk profile following a reduction in total adjusted debt of about 25% over the past few years, improving adjusted leverage to about 4.5 times from 5.7 times over that time period, the agency said.

The outlook also reflects the expectation that earnings and funds from operations should increase over the next two years due to recent cost reductions and improving market conditions, S&P said.

The ratings reflect the company's relatively small size, participation in the highly competitive and cyclical carpet industry and exposure to volatile raw material costs, partially offset by the company's niche market position in the domestic commercial carpet market and its diversified customer base, the agency added.

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