Fitch affirms Allied Waste

Fitch Ratings said it upgraded the senior secured notes and debentures of Allied Waste North America and Browning-Ferris Industries to BB+/RR1 from BB/RR2 and affirmed the issuer default ratings of those companies and their parent, Allied Waste Industries, Inc., at B+.

The agency also affirmed Allied Waste's senior unsubordinated notes at CCC+/RR6 and Allied Waste North America's secured credit facility rating at BB+/RR1 and senior unsecured rating at B/RR5.

The outlook was changed to positive from stable.

The upgrade of the senior secured notes reflects a decline in the level of secured debt outstanding over the past year, which has improved the recovery prospects, Fitch said.

The ratings for Allied Waste and its subsidiaries reflect ongoing improvement in the company's credit profile as it allocates free cash flow toward leverage reduction, the agency said. Although industry volumes have declined somewhat as the U.S. economy has weakened, the pricing environment remains strong and Fitch expects that margins should continue to expand.

The debt-to-EBITDA ratio was 4 times at March 31.

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