The 'B-' rating and negative outlook on American Rock Salt Co. LLC (ARS) reflects Standard&Poor's Ratings Services' view of the company's "highly leveraged" financial risk profile following the severe deterioration of its leverage and interest coverage metrics due to an unseasonably warm 2011-2012 winter season in the company's end markets. We revised our assessment of the company's liquidity profile to "less than adequate" from "weak" given that ARS recently relieved tight covenant restrictions by securing a $10 million revolving credit facility from its private ownership. The ratings also incorporate our view of the company's "vulnerable" business risk profile, which takes into account the company's small size, single site operations, and seasonal demand characteristics of highway deicing salt, its
