Moody's eyes US Ecology for upgrade

Moody's Investors Service placed the ratings of US Ecology Holdings, Inc. on review for upgrade following Republic Services, Inc. reporting it agreed to acquire US Ecology. The agency will review the Ba3 corporate family rating, the Ba3-PD probability of default rating, the Ba3 senior secured revolving credit facility and the Ba3 senior secured first-lien term loan. The agency revised the outlook to under review from negative. The SGL-3 rating is unchanged.

Republic plans to fund the transaction with new and existing debt. Moody's said it sees all US Ecology’s outstanding debt being repaid at transaction close, which is expected to occur by the end of the second quarter of 2022. Moody's said it will withdraw the ratings the ratings if the debt is repaid.

“The review for upgrade reflects Moody's expectation that, should the acquisition by Republic close, US ECOL will become an important part of a larger, more diverse and conservatively capitalized company,” the agency said in a press release.

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