Research Update: AIP MC Holdings LLC Outlook Revised To Positive On Improving Credit Metrics; 'B-' Ratings Affirmed

Grinding media producer AIP MC Holdings LLC's (doing business as Molycop) credit metrics are improving following debt repayment that resulted from an equity investment from its financial sponsor, American Industrial Partners. We expect leverage will trend toward 6x over the next 12 months, supported by lower debt and improving EBITDA given Molycop's leading market position and positive industry fundamentals in the mining sector. As a result, we revised the outlook on the company to positive from stable. At the same time, we affirmed our 'B-' issuer credit rating and issue-level ratings on Molycop. The associated '3' recovery rating remains unchanged. The positive outlook reflects our expectation that Molycop's debt to EBITDA will trend toward 6x over the next 12 months

...- Grinding media producer AIP MC Holdings LLC's (doing business as Molycop) credit metrics are improving following debt repayment that resulted from an equity investment from its financial sponsor, American Industrial Partners. - We expect leverage will trend toward 6x over the next 12 months, supported by lower debt and improving EBITDA given Molycop's leading market position and positive industry fundamentals in the mining sector. - As a result, we revised the outlook on the company to positive from stable. At the same time, we affirmed our 'B-' issuer credit rating and issue-level ratings on Molycop. The associated '3' recovery rating remains unchanged. - The positive outlook reflects our expectation that Molycop's debt to EBITDA will trend toward 6x over the next 12 months due to earnings growth and lower debt as commodity prices and growing production increase demand for Molycop's products....

Research Update