The ratings on Mount Morris, N.Y.-based American Rock Salt Co. LLC (ARSC) reflect the company's limited operating history and diversity because of a reliance on a recently developed mine to produce its primary product--highway deicing salt. The dependence on a single mine heightens the risk of disruption to operations. The ratings also reflect the company's 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, its high margins, and the recession-resistant characteristics of highway deicing salt. Sales of highway deicing salt in North America continue to benefit from the expansion of roadways and from salt's much lower cost and good performance compared with alternative
