The stable outlook reflects our view that Duravant will modestly increase its operating scale through minor organic growth and debt-financed acquisitions, resulting in a healthy EBITDA margin in the low 20% area. We expect leverage to remain elevated in the mid 8.0x area over the next 12 months and anticipate that the company will generate about $40 million of free operating cash flow (FOCF) annually. We could lower our ratings if Duravant's liquidity position weakens significantly. This could occur if reduced demand for the company's key products, loss of key customers, and other operational challenges prevent Duravant from meeting its fixed charges, causing it to generate negative free cash flow. This would likely lead the company to draw on its
