...- Grinding media producer AIP MC Holdings LLC's (Molycop) earnings for fiscal 2022 were relatively flat compared with the previous year while debt increased 44% to partially fund a return of capital to its financial sponsor American Industrial Partners. - As a result, Molycop's adjusted leverage deteriorated to 7.7x as of June 30, 2022, compared with 5.1x as of June 30, 2021, and higher than our previous expectation of 6.0x for fiscal 2022. - Therefore, S&P Global Ratings revised its outlook on Molycop to negative from stable and affirmed its 'B' long-term issuer credit rating on the company. The issue-level and recovery ratings on Molycop's debt are unchanged. - The negative outlook reflects the erosion of the buffer in Molycop's credit metrics and our view that leverage will likely remain above 7x, underscored by our belief that the company's earnings capacity might not increase meaningfully within the next 12 months to push leverage lower....
