Macquarie’s waste management play Bingo is sliding deeper into junk territory, copping a downgrade from powerful ratings agency S&P Global.
Analyst Richard Creed cut the company’s credit rating to B- from B citing weak cash flow, elevated leverage and a negative outlook. The agency also lowered the issue credit rating on Bingo’s term-loan B facility to B-, adding that it now considers “liquidity to be less than adequate”. “Weak earnings growth has hampered Recycle and Resource Operations Pty Ltd.’s deleveraging efforts, and a challenging construction outlook is likely to see leverage remain elevated for the next two years,” Creed told wholesale clients.
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