We expect U.S.-based Carpenter Technology Corp.'s credit measures to remain suppressed in fiscal 2017 given lower levels of EBITDA due to weaker demand in some of its key markets. As a result, we are lowering our corporate credit rating on Carpenter Technology to 'BBB-' from 'BBB', reflecting our revision of the company's financial risk profile to significant from intermediate. The outlook is negative. We also revised our liquidity assessment to adequate from exceptional because the company's revolving credit facility will become current in June 2017. The negative outlook reflects our view that Carpenter's adjusted debt to EBITDA will be about 4x in fiscal 2017, which is at the upper end of the 3x to 4x range expected for the rating.
