North American outsourced laundry services provider WASH Multifamily Acquisition Inc. (dba WASH) continues to post good organic growth from machine count expansion and pricing actions. These higher revenues along with cost initiatives, are driving improved profitability enabling the company to reduce leverage and show improvements in its cash flow generation, which also benefits from a fixed-rate interest expense. However, WASH must refinance its senior notes due April 2026 and its revolving credit facility, as its liquidity is insufficient to cover them. While refinancing risks are rising, we see its recent performance as supportive of its prospect of doing so, and also believe the company is actively assessing options. As a result, we affirmed all of our ratings on WASH Multifamily
