Fitch downgrades Waste Italia, notes

Fitch Ratings said it downgraded Waste Italia SpA's long-term issuer default rating to CC from CCC and its senior secured notes to C from CCC. The recovery rating of the notes is RR5.

Fitch said the downgrade reflects stressed liquidity through 2016, a decline in landfill capacity below rating guidelines, weaker operating performance with assumed further delay in new capacity due to permitting and funding constraints and recent management change.

Parent company Gruppo Waste Italia SpA (GWI) provided bridge financing to help meet the coupon payment on the senior notes in November 2015, but a merger with indebted Biancamano in 2017 may affect shareholder support over the longer term.

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