S&P puts GFL ratings on positive watch

S&P said it placed all ratings, including the B issuer rating, for GFL Environmental Inc. on CreditWatch with positive implications after the company reported its plan to raise C$2.5 billion via an initial public office.

The agency said it believes the company plans to use about half the proceeds to repay debt and the remainder for future acquisitions.

“We anticipate that the lower debt levels and higher earnings from prospective acquisitions following the IPO should also contribute to positive free operating cash flow and interest coverage ratios well above 2x,” said S&P in a press release.

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