Fitch rates Waste Management notes BBB

Fitch Ratings said it assigned a rating of BBB to Waste Management Inc.'s (WM) proposed senior unsecured note offering.

The $500 million in notes will mature in May 2023.

Waste Management’s issuer default rating is BBB with a stable outlook.

The proposed issuance is to fund the upcoming maturity of the outstanding 2.6% senior notes in September 2016. The company also intends to temporarily pay down short-term borrowing under its U.S. revolving credit facility (RCF), which it typically uses for working capital and short-term investments.

Additionally, on Jan. 8, 2016 Waste Management acquired the assets of Southern Waste Systems/Sun Recycling (SWS) for $525 million in an all-cash transaction. The acquisition was primarily funded with borrowings under Waste Management’s revolver.

Fitch said the ratings are supported by the company's strong free cash flow, the predictable nature of the industry, and Waste Management’s position at the largest integrated waste services company in the U.S.

The company continues to maintain good financial flexibility, with adequate cash and revolver availability and a manageable debt maturity schedule, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.