The rating on Mount Morris, N.Y.-based American Rock Salt Co. (ARSC) reflects the company's limited diversity. ARSC relies on a single mine to produce its primary product (highway deicing salt), which heightens the risk of disruption to operations. The rating also reflects the company's aggressive financial profile, seasonal demand (which results in volatile operating performance), and limited financial flexibility. Positive factors reflected in the rating include the company's leading position in its geographic markets, its high margins, and the recession-resistant characteristics of the market for highway deicing salt. Sales of highway deicing salt in North America continue to benefit from the expansion of roadways, as well as from salt's much lower cost and better performance than alternative materials. Also, the
