Moody's assigns Allied Waste ratings |
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Mon, 26 Mar 2007 21:40
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NEW YORK (AP) - Moody's Investors Service assigned new ratings to $3.18 billion in senior secured credit facilities for Allied Waste North America Inc., a subsidiary of waste management company Allied Waste Industries Inc.Moody's gave 'Ba3' ratings to a $1.58 billion revolver due in January 2012, a $1.11 billion term loan due in January 2014 and a $490 million institutional letter of credit facility due in January 2014.'The ratings benefit from a stable underlying business with limited available substitutes and the relative lack of cyclicality in the municipal solid waste industry, the company's prominent market position and the company's size and diversified revenue stream as well as ownership of scarce assets,' Moody's said.High leverage and a weak free cash flow, though, worked against the company and kept its ratings from going higher, the service said.Moody's said it expects the credit agreements to close later this week.It added that the outlook for the ratings was positive, which are cognizes the continuing pricing strength and focus on return on capital in the industry, the reduction in near-term maturities resulting from recent refinancings, as well as the positive free cash flow generation.'All the proceeds will be used to repay existing facilities, the service said.Allied Waste Industries shares fell 18 cents to close at $12.86 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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