S&P: EnviroSolutions outlook negative

Standard & Poor's said it revised its outlook on EnviroSolutions Holdings Inc. to negative from stable and affirmed all the ratings, including the CCC+ corporate credit rating, on the company.

The agency said the outlook revision reflects a highly leveraged financial profile with lower-than-expected earnings amid a slowing economic environment. S&P is concerned that weaker business conditions will result in significantly negative free cash flow during 2009, depleting the company's liquidity, straining its ability to preserve sufficient cushion under its financial covenants and potentially causing a breach of financial covenants.

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