Leading niche position. Generally favorable characteristics of the energy-from-waste industry. Capital-intensive and highly regulated business located mainly in densely populated areas of the U.S., mainly the Northeast. Good operating history; average boiler availability of 90% or above. At least 75% of revenues are contracted under long-term agreements, generally with highly creditworthy municipalities and county governments. Some risk of greater volatility on the energy side as long-term contracts roll off in the next several years unless the company increases its hedging or contracting. Aggressive financial policy. Highly leveraged with thin cash flow measures. Fairly predictable cash flow generation. Strong liquidity. The stable outlook on Covanta Holding Corp. reflects Standard&Poor's Ratings Services' expectation of predictability and stability of cash flows
