Covanta Holding Corp.'s Proposed $400 Million Senior Unsecured Notes Rated 'B'

NEW YORK (S&P Global Ratings) March 2, 2017--S&P Global Ratings said today it assigned its 'B' issue-level rating and '6' recovery rating to Covanta Holding Corp.'s proposed issuance of $400 million senior unsecured notes. The '6' recovery rating reflects our expectation of negligible (0%-10%; rounded estimate: 0%) recovery in the event of default The company intends to use the proceeds to refinance its existing $400 million notes due 2020 and extend the maturity on the new issuance to 2025. The corporate credit rating on the company (BB-/Stable/--) is not affected. The merchant energy market remains challenging, with continued historically low spark spreads and low metals prices; however, construction on Covanta's Dublin facility continues to progress well and remains on schedule

...NEW YORK (S&P Global Ratings) March 2, 2017--S&P Global Ratings said today it assigned its 'B' issue-level rating and '6' recovery rating to Covanta Holding Corp.'s proposed issuance of $400 million senior unsecured notes. The '6' recovery rating reflects our expectation of negligible (0%-10%; rounded estimate: 0%) recovery in the event of default The company intends to use the proceeds to refinance its existing $400 million notes due 2020 and extend the maturity on the new issuance to 2025. The corporate credit rating on the company (##-/Stable/--) is not affected. The merchant energy market remains challenging, with continued historically low spark spreads and low metals prices; however, construction on Covanta's Dublin facility continues to progress well and remains on schedule to achieve commercial operations date by the fourth quarter of 2017. We also note that the company has contracted 90% of the waste supply for the Dublin facility, as expected. RELATED CRITERIA + Criteria - Corporates...

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