S&P cuts GFL Environmental, notes

Standard & Poor's said it lowered its long-term corporate credit rating on GFL Environmental Inc. to B from B+.

The outlook is stable.

At the same time, Standard & Poor's lowered its issue-level rating on the company's C$300 million senior unsecured notes due 2018 to B from B+. The 4 recovery rating is unchanged and indicates an expectation of average (30%-50%) recovery in a default scenario.

"The downgrade reflects weaker credit measures resulting from the company's aggressive acquisition strategy whereby it has completed six leveraged acquisitions in 2014, totaling more than C$200 million," S&P credit analyst Jamie Koutsoukis said in a news release.

"Consequently GFL's financial risk profile has deteriorated to a level consistent with a highly leveraged financial risk profile. As a result, we have revised our comparable rating analysis modifier to neutral from positive."

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