...February 15, 2022 - The pace of the recovery in Carpenter Technology Corp.'s profitability remains uncertain given the underperformance in its aerospace business in the first half of fiscal 2022, which we expect to weaken credit metrics for the full year. - While we expect the recovery to gather momentum in the next 12 months, we see a risk that Carpenter's profits and cash flow could be weak for a third year running based on challenging industry conditions. - As a result, we revised our outlook on Carpenter to negative from stable and affirmed our '##+' issuer and issue-level credit ratings. - At the same time, we affirmed our '##+' issue-level rating on Carpenter's senior unsecured notes. The recovery rating is '3' (50%-70%; rounded estimate: 65%). - The negative outlook reflects that we could lower the rating over the next 12 months if Carpenter does not improve business performance, which could indicate a more challenging recovery to metrics before the COVID-19 pandemic and a potentially...
