...July 2, 2019 - We expect adjusted leverage at AIP MC Holdings LLC (Molycop) will remain elevated (6x-6.5x) in fiscal 2019, reflecting rising conversion costs in the steel making business and a higher revolver balance as a result of a recent acquisition. - Despite steel price volatility, we anticipate the company's adjusted gross margin will be 19% to 20% in the next 12 months given Molycop's contracts that pass through steel costs to customers. - Therefore, we are affirming our 'B' issuer credit rating on Molycop. At the same time, we are affirming our 'B' issue-level rating on the company's $875 million senior secured notes. The '3' recovery rating remains unchanged. - The stable outlook reflects our expectation that Molycop will reduce leverage to less than 6x in the next 12 months as it realizes the full benefits of the recent SABO (Spanish grinding media business) acquisition and steel making input prices subside. NEW YORK (S&P Global Ratings) July 2, 2019--S&P Global Ratings today...
