S&P rates American Rock loan BB, notes CCC+

Standard & Poor's said that it assigned a preliminary B corporate credit rating to American Rock Salt Co. LLC and a preliminary BB issue-level rating to the proposed $250 million term loan B due 2017. The preliminary recovery rating is 1, indicating expectations of very high (90%-100%) recovery.

The outlook is stable.

S&P assigned a preliminary CCC+ issue-level rating to the proposed $200 million of second-lien notes due 2018. The preliminary recovery rating is 6, indicating the expectation of negligible (0%-10%) recovery.

The company expects to use proceeds from the proposed term loan and notes to partially refinance existing debt and fund a distribution to shareholders.

The ratings reflect the company's vulnerable business risk profile and aggressive financial risk profile, the agency said. The business risk assessment incorporates the company's limited diversity, seasonal demand and narrow financial flexibility, the agency said.

The ratings also takes into consideration the view that the company should have adequate liquidity to meet its near-term obligations, benefits from its strategic location and has a recession resistant business, the agency added.

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