Moody's lowers Maytag

Moody's Investors Service said it lowered the debt ratings of Maytag Corp., while maintaining the ratings on review with "direction uncertain."

The corporate family rating and bank facility rating have been lowered to B1 from Ba2 and the senior unsecured notes have been lowered to B2 from Ba2, Moody's said.

The action follows Maytag's recent lowering of near-term financial guidance due to a combination of cost increases and unfavorable product and pricing mix as well as the subordination impact on the senior notes arising from the proposed new secured credit facility, the agency noted.

Moody's said the company cited known challenges to its cost structure, including high fixed costs and excess manufacturing capacity, as well as more recent issues such as increased distribution expenses and raw material costs.

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