Mohawk Industries, Inc. — Moody’s

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

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People’s Bank of China Cuts Stake in India’s Housing Development Finance

(Bloomberg) — China’s central bank has sold at least some of its stake in India’s Housing Development Finance Corp., according to shareholder details filed with the exchanges.

The People’s Bank of China has dropped off the list of investors holding at least a 1% stake in the company as of end-June. The PBOC held about 17.5 million shares, accounting for a 1.01% shares, at end-March. It cannot be ascertained if the Chinese central bank continues to holds any stake in the mortgage lender or not.

The PBOC may have sold at least a part of its shares in the open

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EY and PwC face investigation over London Capital & Finance audits

PwC
PwC

Three auditors which signed off the books of collapsed savings firm London Capital & Finance (LCF) are being investigated by the accounting watchdog.

Big Four accountants EY and PwC and smaller rival Oliver Clive & Co will face questions from the Financial Reporting Council (FRC) over why no warning signs were spotted before LCF went bust last year, leaving 11,600 investors facing losses of up to £237m.

Administrators later found that customers’ money had been spent on a riding stables, a helicopter and what they termed “highly suspicious” property developments in the Cape Verde islands.

The three auditors signed

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Wirecard’s former CEO Markus Braun arrested over finance scandal

Markus Braun, former CEO of Wirecard, stands accused of market manipulation. (Peter Kneffel/picture alliance via Getty Images)
Markus Braun, former CEO of Wirecard, stands accused of market manipulation. (Peter Kneffel/picture alliance via Getty Images)

Markus Braun, who resigned as chief executive of Wirecard (WDI.DE) last week, has been detained in Bavaria in connection with the balance-sheet scandal at the troubled German payments company.

The prosecutor’s office in Munich said Braun turned himself in on Monday evening and would appear before a judge today, who will decide on whether or not to keep him in custody.

Braun, an Austrian, is being accused of inflating Wirecard’s total assets and sales volume “through feigned income from business” in

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