Research Update: JW Aluminum Continuous Cast Co. Upgraded To 'B-' From 'CCC+', Outlook Stable; Debt Rating Raised

U.S.-based manufacturer JW Aluminum Continuous Cast Co. (JWA) is on track for recovery in production and earnings in 2022, as operational issues, related to the 2020 fires, are largely behind them. We anticipate JWA will maintain an adequate liquidity cushion and sufficient headroom under its financial covenants as it ramps up production again. As a result, we raised our issuer credit rating on JWA to 'B-' from 'CCC+' and raised our issue-level rating on the company's senior secured notes to 'B-' from 'CCC+'. Our recovery rating on the notes remains '3' indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery. The stable outlook reflects our expectation that JWA should maintain leverage of 5x-6x over the next 12 months as

...- U.S.-based manufacturer JW Aluminum Continuous Cast Co. (JWA) is on track for recovery in production and earnings in 2022, as operational issues, related to the 2020 fires, are largely behind them. - We anticipate JWA will maintain an adequate liquidity cushion and sufficient headroom under its financial covenants as it ramps up production again. - As a result, we raised our issuer credit rating on JWA to 'B-' from '###+' and raised our issue-level rating on the company's senior secured notes to 'B-' from '###+'. Our recovery rating on the notes remains '3' indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery. - The stable outlook reflects our expectation that JWA should maintain leverage of 5x-6x over the next 12 months as production recovers to nameplate capacity following completion of repairs....

Research Update