S&P flips Wastequip view to positive

S&P said it revised its outlook for Wastequip LLC to positive from negative and affirmed all its ratings for the company, including the CCC+ issuer rating.

The agency noted Wastequip extended its revolver maturity by 18 months to Sept. 20, 2024, which helps its liquidity even though it reduced the size of the facility by $5 million.

Though S&P said it sees the company posting negative S&P Global Ratings-adjusted free operating cash flow (FOCF) in fiscal year 2022, the agency anticipates moderate growth in S&P Global Ratings-adjusted EBITDA and improved working capital over the next 12 months that will lead to positive FOCF in 2023.

“The positive outlook reflects our expectation for higher volumes, stabilizing supply-chain conditions, and more favorable working-capital dynamics over the next 12 months, which we believe will generate positive FOCF, further improve the company's liquidity, and ease refinancing risks,” S&P said in a press release.

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