Browning-Ferris Indus Outlk to Neg by S&P;Rtgs Afmd.NEW YORK--(BUSINESS WIRE)--Browning-Ferris Industries Inc. 02-Jul-98 Sym BFI BFI - brute force and ignorance (S&P) Browning-Ferris Indus Outlk to Neg by S&P;Rtgs Afmd 07-02-98 NY -- Standard & Poor's CreditWire 7/2/98 -- Standard & Poor's today revised its outlook on Browning-Ferris Industries Browning-Ferris Industries, or "BFI", is a licensed trademark of Allied Waste Industries, a North America waste collection company. Many local units of Allied Waste are still known as BFI in the markets they serve. Inc. to negative from stable. At the same time, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its single-'A'-minus senior unsecured and corporate credit ratings, and 'A-2' commercial paper rating on the company. The outlook revision follows Browning-Ferris' announcement that it has approved an additional $750 million authorization to purchase its common stock, anticipated to be completed by Sept. 30, 1999. That decision reduces financial flexibility, with funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. to debt and debt to capital weakening to about 40% and 60% over the next year, respectively, which are subpar sub·par adj. 1. Not measuring up to traditional standards of performance, value, or production. 2. Below par in a hole, round, or game of golf. measures for the rating. Browning-Ferris' ratings reflect its position as the second largest U.S. waste services firm and strong cash flow from core solid waste services. Ratings also acknowledge a more aggressive financial policy. The recent sale of operations outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. will allow the company to focus on its more profitable U.S. business, with opportunities to increase margins and returns. While the solid waste industry is mature and very competitive, earnings prospects are enhanced by the essential nature of its services, improving operating efficiencies, slightly higher volume trends, modest pricing flexibility in some regions of the country, and asset rationalization rationalization, in psychology: see defense mechanism. . OUTLOOK: NEGATIVE Additional actions to enhance shareholder value or increased acquisition activity would further stretch the balance sheet and could lead to lower ratings, Standard & Poor's said.---CreditWire
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