The ratings on Mount Morris, N.Y.-based American Rock Salt Company LLC (ARSC) reflect the company's limited operating history and operating diversity due to its reliance on a recently developed single-site mine to produce its primary product--highway deicing salt. This dependence means there is a heightened risk of disruption to operations. The ratings also reflect its aggressive financial profile, seasonal demand, which results in a 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 deicing salt in North America continue to benefit from expansion of roadways and its much-lower cost and good performance compared with alternative materials. In
