The ratings on Mount Morris, N.Y.-based American Rock Salt Company LLC (ARSC) reflect the company's limited operating history and operating diversity, because it relies on a recently developed single-site mine to produce its primary product--highway de-icing salt--heightening its risk to operating disruptions. The ratings also reflect its aggressive financial profile, seasonal demand resulting in volatile operating performance, and limited financial flexibility. These factors significantly overshadow the company's leading position within its geographic markets, high margins and the recession resistant characteristics of highway deicing salt. Sales of highway de-icing salt in North America continue to benefit from expansion of roadways and its much lower cost and good performance compared with alternative materials. In addition, the product, purchased mostly by municipalities for
