S&P rates Progressive Waste loan BBB-

Standard & Poor's said it assigned a BBB- rating to Progressive Waste Solutions Ltd.'s proposed refinancing in the amount of $2.25 billion, comprising a $1.75 billion revolver and $500 million term loan B.

The loan has a recovery rating of 2, indicating 70% to 90% expected recovery in a default.

Under the proposed refinancing, the company will be the borrower of the new credit facility, which will replace the debt held at its subsidiaries IESI Corp. and BFI Canada, the agency said.

The company will now finance its operations on a consolidated basis as all subsidiary-level credit facilities will be retired.

In addition, the company's debt maturity schedule will be extended with the new facility with the revolver expected to mature in 2017 and term loan B expected due in 2019.

The refinancing will not affect debt levels and the company's financial risk profile will remain within expectations for the rating, S&P said.

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