Strong presence in the energy-from-waste (EFW) industry that has favorable business characteristics Large share of revenues are earned through contracted long-term agreements, generally with highly creditworthy municipalities and county governments Cash flow supported by long-term contracts 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. Risk of greater volatility of revenue from the sale of energy and metals. Fairly predictable cash flow generation Adequate liquidity Aggressive financial policy The outlook on Covanta Holding Corp. reflects our expectation of stable operating results with cash flow generation from fairly predictable and stable waste contracts, system improvements, and organic growth opportunities. These offset potential contract
