Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing - S&P Global Ratings’ Credit Research

Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing

Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing - S&P Global Ratings’ Credit Research
Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing
Published Dec 22, 2020
7 pages (3015 words) — Published Dec 22, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based manufacturer JW Aluminum Continuous Cast Co. (JWA) has faced operational disruptions at its Mount Holly, S.C., facility due to three fires over the past five months. S&P Global Ratings projects interest coverage just above 1x, and the potential for a breach under the company's financial covenant in 2021. In addition, liquidity is under pressure from recent disruptions, and capital expenditures tied to Mount Holly. As a result, we are lowering our issuer credit and issue-level ratings on JWA to 'CCC+' from 'B-'. Our recovery rating remains '3'. The developing outlook reflects the equal probability we could lower or raise our ratings dependent upon the company being able to return Mount Holly to full production capacity without further disruptions, while

  
Brief Excerpt:

...- U.S.-based manufacturer JW Aluminum Continuous Cast Co. (JWA) has faced operational disruptions at its Mount Holly, S.C., facility due to three fires over the past five months. - S&P Global Ratings projects interest coverage just above 1x, and the potential for a breach under the company's financial covenant in 2021. - In addition, liquidity is under pressure from recent disruptions, and capital expenditures tied to Mount Holly. - As a result, we are lowering our issuer credit and issue-level ratings on JWA to '###+' from 'B-'. Our recovery rating remains '3'. - The developing outlook reflects the equal probability we could lower or raise our ratings dependent upon the company being able to return Mount Holly to full production capacity without further disruptions, while maintaining adequate liquidity....

  
Report Type:

Research Update

Issuer
JW Aluminum Continuous Cast Co.
GICS
Building Products (20102010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing" Dec 22, 2020. Alacra Store. May 01, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-JW-Aluminum-Continuous-Cast-Co-Downgraded-To-CCC-Due-To-Weakened-Credit-Metrics-Outlook-Developing-2573818>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: JW Aluminum Continuous Cast Co. Downgraded To 'CCC+' Due To Weakened Credit Metrics; Outlook Developing Dec 22, 2020. New York, NY: Alacra Store. Retrieved May 01, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-JW-Aluminum-Continuous-Cast-Co-Downgraded-To-CCC-Due-To-Weakened-Credit-Metrics-Outlook-Developing-2573818>
  
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