Fitch rates Waste Management notes BBB+

Fitch Ratings said it assigned a rating of BBB+ to Waste Management, Inc.'s proposed issuance of five series of senior unsecured notes totaling $4 billion.

Waste Management has a long-term issuer default rating, senior unsecured bank debt rating and senior unsecured notes rating at BBB+.

The outlook is stable.

The company plans to issue the senior unsecured notes with tenors of five-, seven-, 10-, 20- and 30 years.

The ratings reflect an expectation that the proceeds will be primarily used to provide funding for the acquisition of Advanced Disposal and the tender offering of up to $1.3 billion across five series of senior notes, and to repay commercial-paper borrowings, Fitch said.

Following the issuance, the agency said it expects Waste Management to hold excess cash on its balance sheet until the acquisition closes, which could occur by early 2020.

The acquisition combines the largest and fourth largest municipal solid waste operators in the Unites States, further adding to Waste Management's significant network scale, Fitch said.

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