Moody's alters Broom outlook to negative

Moody's Investors Service said it changed the outlook on Broom Holdings BidCo Ltd., the holding company of Beauparc Utilities Holdings Ltd. to negative from stable.

“The negative outlook reflects Moody's expectations that Broom's leverage – defined as Moody's-adjusted gross debt/EBITDA – will continue to remain above 5x for a sustained period of time. Although the company's underlying operating performance held up well during 2021, the incremental debt taken on to finance the acquisition of B&M, a U.K.-based player in commercial and industrial waste, will temporarily re-leverage the balance sheet,” the agency said in a press release.

Concurrently, Moody's affirmed Broom's B1 corporate family rating, B1-PD probability of default rating, and B1 ratings on its senior secured term loan and credit facilities due 2028.

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