...- Granite Acquisition Inc. is an indirect, wholly owned subsidiary of Wheelabrator Technologies Inc. (WTI), a U.S.-based firm that owns and/or operates waste-to-energy (WtE) facilities. The ultimate owner is Macquarie Infrastructure Partners (MIP), which we view as a financial sponsor. - Although the sale of the U.K. portfolio has been delayed, the company expects the sale to close at the end of 2020 or first quarter of 2021. - If the U.K. portfolio is sold at an attractive valuation, the company will apply net asset sale proceeds to repay existing debt, from which a new capital structure will emerge. However, consolidated leverage would remain too elevated for the existing rating if the transaction is not executed. - Additionally, Granite will financially consolidate with Tunnel Hill (B/Stable/--), another other waste player also owned by MIP, which we view as a weaker entity from a credit standpoint. - Therefore, we are affirming the 'B+' issuer credit rating on Granite, but revising...
