Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5') - S&P Global Ratings’ Credit Research

Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5')

Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5') - S&P Global Ratings’ Credit Research
Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5')
Published Aug 11, 2020
3 pages (1365 words) — Published Aug 11, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) Aug. 11, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Covanta Holding Corp.'s proposed $400 million senior unsecured notes due in 2030. 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 to repay its $5.875% notes due in 2024 in a debt-for-debt refinancing. We view the transaction as slightly credit positive because the company will extend its maturity wall and, we expect, marginally reduce its interest rate. ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors Our simulated default scenario contemplates a default in 2024 due to a decline in Covanta's EBITDA,

  
Brief Excerpt:

...August 11, 2020 NEW YORK (S&P Global Ratings) Aug. 11, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '5' recovery rating to Covanta Holding Corp.'s proposed $400 million senior unsecured notes due in 2030. 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 to repay its $5.875% notes due in 2024 in a debt-for-debt refinancing. We view the transaction as slightly credit positive because the company will extend its maturity wall and, we expect, marginally reduce its interest rate. ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors - Our simulated default scenario contemplates a default in 2024 due to a decline in Covanta's EBITDA, which would be insufficient to cover consolidated fixed charges and debt maturities. We assume a decline due to higher-than-expected operating costs, lower power prices and tip fees, an inability to renew contracts on...

  
Report Type:

Ratings Action

Ticker
CVA
Issuer
Covanta Holding Corp.
GICS
Environmental & Facilities Services (20201050)
Sector
Global Issuers , Public Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5')" Aug 11, 2020. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Covanta-Holding-Corp-s-Senior-Unsecured-Notes-Rated-B-Recovery-Rating-5-2493810>
  
APA:
S&P Global Ratings’ Credit Research. (). Covanta Holding Corp.'s Senior Unsecured Notes Rated 'B' (Recovery Rating: '5') Aug 11, 2020. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Covanta-Holding-Corp-s-Senior-Unsecured-Notes-Rated-B-Recovery-Rating-5-2493810>
  
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