Covanta Holding Corp.'s Proposed Series 2020A, 2020B Tax-Exempt Notes Rated 'B' (Recovery: '5'); Unsecured Rating Raised

NEW YORK (S&P Global Ratings) Aug. 10, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Covanta Holding Corp.'s proposed $39.4 million series 2020A and $90 million series 2020B tax-exempt notes. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 15%) recovery in the event of a default. The company plans to use the proceeds from these notes to repay its existing notes due 2043 and 2045 in a debt-for-debt refinancing. At the same time, we raised our issue-level rating on Covanta's existing unsecured debt to 'B' from 'B-' and revised the recovery rating to '5' from '6'. The proposed notes will be pari passu with the company's existing rated debt and

...August 10, 2020 NEW YORK (S&P Global Ratings) Aug. 10, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Covanta Holding Corp.'s proposed $39.4 million series 2020A and $90 million series 2020B tax-exempt notes. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 15%) recovery in the event of a default. The company plans to use the proceeds from these notes to repay its existing notes due 2043 and 2045 in a debt-for-debt refinancing. At the same time, we raised our issue-level rating on Covanta's existing unsecured debt to 'B' from 'B-' and revised the recovery rating to '5' from '6'. The proposed notes will be pari passu with the company's existing rated debt and will replace notes that currently have an upstream guarantee from Covanta Energy LLC. Because all of Covanta's debt will now be equal in rank, there is more value available for the unsecured lenders in the event of a default. ISSUE RATINGS--RECOVERY...

Ratings Action