“The negative outlook reflects our view of management’s plans to move forward with significant capital spending on a large facility rebuild project and the associated new debt issuance expected within the outlook period, which will likely weaken JRMC’s balance sheet metrics,” said Wendy Towber, an S&P Global Ratings credit analyst.
In addition, the outlook revision is a result of JRMC’s operating losses in fiscal year 2017 and S&P’s expectation that these losses will continue during fiscal year 2018.
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