Moody's ups Compass Minerals view to positive

Moody's Investors Service said it affirmed the ratings of Compass Minerals Group, Inc. (B1 corporate family rating).

The outlook was revised to positive from stable.

Moody's said the outlook revision recognizes Compass Minerals' improving credit metrics, reflecting the company's efforts to grow the salt products and specialty potash businesses without increasing financial leverage.

Affirmed ratings include the company's $325 million guaranteed senior subordinated notes due 2011 at B3, $27 million guaranteed senior secured term loan due 2009 at B1 and $135 million guaranteed senior secured revolving credit facility due 2008 at B1.

The positive outlook reflects Moody's expectation that Compass Minerals will generate about $40 million of free cash flow in 2005 and that it will sustain or increase the current volume of business, the agency noted.

The ratings also consider the mature nature of the highway deicing business, characterized by low single digit growth rates, which in Moody's view, may increase the likelihood for strategic acquisitions or shareholder enhancement activities.

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