U.S. energy-from-waste generator Covanta Holding Corp. (Covanta) is restructuring its debt profile by replacing project-level amortizing debt with bullet maturity debt at the holding company level. The senior unsecured revenue bonds would be structurally senior to the existing senior unsecured debt at the holding company because Covanta Energy Corp. (CEC) is guaranteeing the new bonds. We are assigning our 'BB-' rating to the $335 million senior unsecured revenue bonds, with a '3' recovery rating. We are also lowering our issue ratings on Covanta's existing unsecured notes to 'B' from 'B+', based on a revision of the recovery rating on this debt to '6' from '5'. We are affirming our 'BB-' corporate credit rating on Covanta and subsidiary CEC, as well
