We expect U.S.-based Carpenter Technology Corp.'s debt leverage to be sustained at higher-than-expected levels in fiscal 2016 due to an EBITDA decline caused by weak demand in some of its key markets, such as energy, and ongoing share repurchases. We are revising our outlook to negative from stable and affirming our 'BBB' corporate credit rating on the company. We are also affirming our 'BBB' issue-level rating on the company's unsecured debt. The negative outlook reflects our view that Carpenter's debt to EBITDA will be about 3.5x in fiscal 2016, which is above the 2x to 3x range expected for the company's intermediate financial risk profile. We expect sales to remain under pressure due to weak demand in some of the
