...- S&P Global Ratings expects Mount Morris, N.Y.-based salt producer American Rock Salt Co. LLC's adjusted leverage will remain elevated above 7x in fiscal 2023 for a third straight year as lower volumes from a milder than-expected 2022-2023 winter season could offset price increases. - We believe the company's credit metrics have little cushion to absorb lower earnings at its current debt. - We also believe American Rock Salt could breach the fixed-charge financial covenant if tested, as interest costs continue to rise on its variable-rate term loans. - Therefore, we lowered our issuer credit rating on American Rock Salt To 'B-' from 'B'. - Concurrently, we lowered our issue-level ratings on the first-lien term loan to 'B-' from 'B' and on the second-lien term loan to '###' from '###+'. The '3' and '6' recovery ratings, respectively, are unchanged. - The stable outlook reflects our view that earnings should improve if better volumes take hold in fiscal 2024 in this cyclical industry. In...
