Fitch Rates Whirlpool's $850MM Senior Notes 'BBB-'

NEW YORK--(Business Wire)--
Fitch Ratings has assigned a 'BBB-' rating to Whirlpool Corporation's (NYSE:
WHR) $850 million three- and five-year senior notes. Proceeds are expected to be
primarily used to refinance short-term debt and to meet upcoming debt
maturities.

Fitch currently rates WHR and Maytag Corporation (Maytag) as follows:

WHR

--Long-term Issuer Default Rating (IDR) 'BBB-';

--Short-Term IDR 'F3';

--Commercial paper (CP) 'F3';

--Senior unsecured notes 'BBB-';

--Bank revolving credit facility 'BBB-' (Whirlpool Corp., Whirlpool Europe B.V.
and Whirlpool Finance B.V. as borrowers).

Maytag

--Long-term IDR 'BBB-';

--Senior unsecured notes 'BBB-'.

The short-term IDR and CP rating for Whirlpool Finance B.V. is 'F3'. The Rating
Outlook is Negative. Approximately $3 billion of debt is outstanding.

The Negative Outlook reflects Fitch's concerns regarding: --The extent of the
decline in financial results from weak global economies and the ability of the
company to downsize its cost structure if revenues decline faster than
expectations;

--Maintenance of prices when consumers and retailers are pressured;

--A stronger U.S. dollar which could have a negative impact on the top line and
profits as was the case in the first quarter of 2009.

Appliance demand has fallen in the U.S. since 2006 and global appliance demand
trends are currently weak. In the U.S., declining discretionary consumer
spending and rising unemployment compounded by continued weakness in new home
construction, ongoing weakness in existing home sales, limited home renovation
projects, lessening demand for replacement appliances, and tight credit markets
continue to drive demand for appliances sharply lower. Retail destocking also
affected first quarter 2009 North American results. Slowing demand in
international markets will remain a drag in 2009 with Europe expected to be
weaker than previously envisioned. Whirlpool has indicated it will see slowing
demand in Latin America, an area that has contributed significantly to overall
results over the past four years. During the first quarter of 2009, WHR's net
sales decreased 22.7% to $3.6 billion. Excluding the impact of foreign currency,
net sales decreased 14.2%.

WHR's actions taken to date to manage through this difficult environment include
significant cost reduction steps, particularly regarding production costs and
SG&A expenses. Restructuring efforts, reduced headcount and decreased spending
drove expenses sharply lower in the first quarter of 2009 and the expectation is
for continuing cost control for the remainder of the year. In addition, WHR
intends to decrease capital spending by 10% ($50 million-$100 million) and to
drive inventories lower to improve cash flow in 2009.

Global economic performance and WHR's ability to bring production in line with
weaker demand, improve productivity, reduce costs and maintain price increases
will be key factors in improving operating cash flow. However, free cash flow
(cash flow from operations less capital expenditures and dividends), which is
expected to turn sharply positive in 2009 after being negative in 2008 will
drive debt reduction. Despite expected lower debt levels by year-end 2009,
financial measures will remain pressured. WHR's leverage as measured by debt to
EBITDA increased from 1.3 times (x) on Dec. 31, 2007 to 2.0x at year-end 2008
and was at 2.4x for the latest 12 month period ended March 31, 2009. Interest
coverage (EBITDA/Interest) in 2008 was 6.4x compared with 8.0x in 2007. For the
latest 12 months, interest coverage was 5.9x.

The company recently amended its $2.2 billion credit agreement, which expires
Dec. 1, 2010, providing financial covenant flexibility as the maximum leverage
ratio has been increased to 3.5x from 3.0x and the minimum interest coverage
ratio was reduced to 1.5x from 2.0x for 2009. Both measures revert to their
former levels in 2010. With the amendment, interest cost and fees rose. The
current debt offering will also result in higher interest costs. Fitch expects
that WHR will have sufficient cushion to operate within its covenants.

WHR maintains its position as the world's largest appliance manufacturer, and
holds the No. 1 market position in many regions. The company is also expected to
continue its industry-leading innovation programs, which should help drive
demand when global economies rebound.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Thomas P. Razukas, CFA, 212-908-0223
Grace Barnett, CPA, 212-908-0718
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

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