S&P slashes WIN Waste

S&P said it lowered its ratings for WIN Waste Innovations Holdings Inc. and its senior secured debt to CCC+ from B and revised the debt recovery rating to 4 from 3.

“We think credit risks at WIN Waste have risen given volatility in earnings in the first half of 2023 that heightens credit risks at a time of high debt leverage, and negative free cash flow. Our current earnings outlook for the remainder of 2023 no longer supports an improvement in annual 2023 earnings relative to 2022.

Given the unpredictability in recent earnings we will look for a brief track record of earnings strength before we assume the company has overcome its recent challenges and is on a path to generate stronger earnings than our revised 2023 and 2024 assumptions,” S&P said in a statement.

The agency said it also forecasts total debt to EBITDA to approach the 9x-10x range at year-end 2023 after considering an increase in debt this year.

On the plus side, WIN Waste’s liquidity is adequate, though it could weaken, and there are no major debt maturities within the next three years, S&P noted.

The outlook is negative.

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