A slower-than-expected earnings recovery and persistent negative free cash flow generation is weighing on Recycle and Resource Operations Pty Ltd.'s (Bingo) capital structure and reducing its available liquidity. The depressed trading prices of Bingo's debt could raise the possibility of a distressed exchange as pressure on its capital structure grows, particularly if cash flow generation remains weak. Australia-based Bingo provides waste management solutions for domestic and commercial businesses. On Feb. 10, 2025, we lowered our issuer credit rating on Bingo to 'CCC+' from 'B-'. At the same time, we lowered the issue credit rating on the company's term-loan B (TLB) facilities to 'CCC+' from 'B-' (recovery rating: '3'). We continue to consider liquidity to be less than adequate. The negative
