U.S.-based Carpenter Technology Corp.'s sources of liquidity are likely to notably exceed its use of funds over the next two years. We are affirming our 'BBB' corporate credit and issue-level ratings on Carpenter and revising our assessment of its liquidity to "exceptional" from "strong." The stable outlook reflects our view that Carpenter's operating margins and demand from its key segments will stabilize in 2016. We expect debt to EBITDA will be slightly over 3x in fiscal 2016, which follows a trend experienced in the last two quarters and provides minimal cushion for the rating, if sustained. On Nov. 24, 2015, Standard&Poor's Ratings Services affirmed its 'BBB' corporate credit and issue-level ratings on Reading, Pa.-based Carpenter Technology Corp. and
