S&P affirms Waste Connections

Standard & Poor's said it affirmed its BBB+ corporate credit rating on Waste Connections Inc. The outlook is stable.

At the same time, S&P affirmed all of its BBB+ issue-level ratings on Waste Connections' existing debt.

“While we believe that the proposed merger will strengthen Waste Connections' business risk profile, we continue to assess the company's business risk profile as being at the higher end of our strong category,” said S&P credit analyst Henry Fukuchi in a news release.

The proposed transaction will modestly improve Waste Connections' business risk profile by increasing the company's scale, diversifying its revenue streams, and improving its geographic diversity.

Pro forma for the transaction, S&P expects the company to maintain EBITDA margins of about 31% while achieving revenues of about $4 billion and free cash flow of about $600 million annually.

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