Moody's affirms Waste Services

Moody's Investors Service said it affirmed the ratings of Waste Services, Inc.

The agency said the affirmation is in anticipation of the completion of the acquisition of Liberty Waste, LLC and Sun Country Materials, LLC.

Moody's said its favorable view of the intended purchases also takes into consideration expected benefits from increased internalization and overall position in the Tampa market.

The ratings are supported by a strong pricing environment across the sector, Waste Service's revenue management efforts, including the targeting of under-priced accounts and the impact of fuel surcharges and the expectation of positive adjusted free cash flow in 2006, the agency noted.

The ratings remain constrained by high financial leverage highlighted by adjusted debt at Dec. 31, which slightly exceeded revenue of $382 million and pro forma unadjusted debt to EBITDA of about 5 times, Moody's added.

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