Recent financial performance at U.S.-based Energy from Waste (EfW) provider Covanta Holding Corp. has fallen short of our expectations. We forecast our measure of adjusted leverage will remain above 6.5x through 2021 as the company faces headwinds in multiple operating segments while it continues to fund construction of its U.K. expansion. We are lowering our issuer credit rating on the company to 'B+' from 'BB-'. We are also lowering our rating on the company's senior unsecured debt to 'B+' from 'BB-' and our rating on the company's deeply subordinated debt to 'B-' from 'B'. The stable outlook reflects the contracted and hedged nature of most of Covanta's cash flows, which provides good cash flow visibility, as well as our belief
