S&P rates Waste Services notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Waste Services Inc. and assigned a B- rating to the company's proposed $160 million senior subordinated notes due 2014.

The outlook is stable.

The financing plan follows an announcement that Waste Services has acquired the majority of the collection, transfer and disposal operations of Allied Waste Industries Inc. in central and northern Florida, and that the company has entered into a definitive agreement to acquire the operations of Florida Recycling Services Inc. The company's financing plan includes the $160 million senior secured credit facilities, the $160 million senior subordinated notes, and a private equity placement of at least $40 million.

S&P said the ratings on Waste Services reflect its acquisitive growth strategy and very aggressive financial profile, modest scale of operations relative to its peers, and integration risks associated with recent asset acquisitions.

This is partially offset by favorable industry characteristics, including high barriers of entry and recession resiliency; some geographic diversity; and the obtainment of several permitted, well-positioned long-lived landfills.

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