Moody’s snips WIN Waste

Moody's Investors Service said it downgraded WIN Waste Innovations Holdings Inc.’s, including the corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and rating on the company's first-lien senior secured debt to B3 from B2.

“The downgrades reflect WIN's weak liquidity with less external funding capacity than Moody's previously expected. The weak liquidity is characterized by very limited revolver availability and Moody's expectation for free cash flow to remain negative for some time. This will also result in sustained high leverage. Moody's believes this leaves a limited cushion to absorb any emerging challenges as the company navigates through recent operating headwinds that will take time to improve,” the agency said in a press release.

Moody's said it forecasts WIN’s adjusted debt-to-EBITDA to stay above 7x through 2023, pro forma for acquisitions, and decline towards a still high 6.5x with moderate EBITDA growth over the next year.

The outlook remains negative.

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