Our preliminary ratings on Australia-based Recycle and Resource Operations Pty Ltd. (Bingo) reflect its vertically integrated operating structure, landfill and recycling assets, strong presence in the Sydney market, and leverage to the structural shift toward greater recycling. Recycle and Resource Operations Pty Ltd. is a holding company for the proposed acquisition of Bingo Industries Ltd. The company's small scale and limited geographic diversity; exposure to cyclical end-markets; limited track record in its current form; commissioning, regulatory, and environmental risks; and highly leveraged capital structure constrain the ratings. Bingo intends to issue a A$825 million secured term-loan B (TLB) to refinance its capital structure and partly fund its buyout by Macquarie Infrastructure and Real Assets (MIRA), which we view as strategic
