S&P rates Waste Management notes BBB

Standard & Poor's said it assigned a BBB issue-level rating to Waste Management Inc.'s proposed $400 million of senior notes due 2021.

The stable outlook and existing ratings on Waste Management, including the BBB long-term corporate credit rating, are unchanged.

The company will use the proceeds from the notes offering to repay the $147 million of its existing 7.65% senior notes due March 2011 plus accrued and unpaid interest of about $5.6 million as well as for general corporate purposes.

The ratings reflect its strong business risk profile, leading market position and diversity, healthy operating margins and stable cash flows, the agency said.

The ratings also consider the company's significant financial risk profile, which reflects the allocation of cash flow toward dividends and share repurchases; high debt balances; and sizable asset retirement and environmental obligations, S&P said.

The total debt-to-EBITDA ratio was 3.1 times as of Dec. 31.

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