Waste Management Inc. (WM) announced it is acquiring Stericycle Inc. in a transaction valued at $7.2 billion, including the assumption of Stericycle's debt. We revised the outlook on WM to negative from stable and affirmed all ratings, including the 'A-' issuer-credit rating. The negative outlook reflects our belief that the large debt-funded acquisition will lead to credit metrics that are at the lower end of our expectations for the rating. Additionally, the Stericycle acquisition provides WM a larger footprint into the regulated medical waste industry in North America, which should experience higher growth rates than the solid waste business. Still, the negative outlook reflects our belief that credit metrics will be stretched at close of the transaction, and if it
