Fitch Affirms Credit Rating For Republic Services

NEW YORK (AP) — Fitch Ratings on Thursday affirmed ratings for Republic Services Inc. and its subsidiaries that reflect the trash-hauler's potential for generating cash flow and its financial flexibility, which is offset partially by debt from last year's purchase of Allied Waste Industries Inc.

Fitch analyst Stephen Brown applauded the company's declining debt since the acquisition, and he said he expects it to decline further as the company focuses on its leverage and cash flow.

Brown assigned an investment grade rating of "BBB+" to most of the notes and credit facilities of the company and its subsidiaries. The only anomaly is the "BB+" junk grade assigned to Allied Waste Industries' senior subordinated notes.

Brown upgraded the company's outlook to "Positive" from "Stable" to reflect expectations that the company's credit profile will continue strengthening over the next several years "as the company realizes merger-related efficiencies and uses its strong free cash flow to further reduce its debt."

Shares of Republic Services rose 14 cents to close at $25.98.