U.S. energy-from-waste generator Covanta Holding Corp. (Covanta) is recapitalizing the debt at its subsidiary Covanta Energy Corp. (CEC) and at the parent level. We are assigning our 'BB+' rating to the proposed new $300 million senior secured term loan due 2019 and $900 million revolver at CEC due 2017. The recovery rating on these new issues is '1'. This will replace the existing credit facility. We are also assigning a 'B+' rating to Covanta's new senior unsecured notes based on a recovery rating on these notes of '5'. We are also raising our issue ratings on Covanta's existing unsecured notes to 'B+' from 'B', based on a revision of the recovery rating on this debt to '5' from '6'. We
