Fitch rates Republic notes BBB

Fitch Ratings said it assigned a BBB rating to Republic Services, Inc.'s proposed $750 million senior note offering. The company's issuer default rating is BBB, and its senior bank credit facilities and senior long-term debt are rated BBB. The outlook is stable.

Proceeds from the 10-year issuance are expected to be used to fund the redemption of $750 million of Allied Waste's 6.875% notes due in 2017.

The agency said the ratings reflect the company's healthy operating margins, stable debt levels and proven ability to generate substantial free cash flow. Though core waste volumes remain low coming out of the recession, Republic Services continues to produce strong results, maintaining EBITDA margins around 30%, Fitch said.

As of March 31, the debt-to-EBITDA ratio per Fitch's calculations stood at 2.8 times, substantially unchanged from a year ago.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.