Although U.S.-based Covanta Holding Corp.'s leverage has increased due to significant capital spending on growth projects, we expect it to materially decline once these projects (namely the Dublin facility) are operational and the expected cash flows are realized. We are affirming our 'BB-' corporate credit ratings on Covanta Holding Corp. and its subsidiary Covanta Energy LLC. The outlook is stable. We rate these entities on a consolidated basis. The stable outlook on Covanta reflects the expectation of continued strong boiler availability at the plants, along with debt to EBITDA of about 6.5x, decreasing over the next few years. On March 15, 2017, S&P Global Ratings affirmed its 'BB-' corporate credit ratings on Covanta Holding Corp. and Covanta Energy LLC. The
