Fitch Rates Republic Service Senior Notes BBB-

NEW YORK (AP) — Fitch Ratings said Monday it has assigned a rating just above junk status to new 5.5 percent senior unsecured notes from Republic Services, Inc.

The "BBB-" rating reflects the Phoenix-based waste collection and disposal company's potential for significant cash flow, as well as Republic's debt following its combination with Allied Waste Industries Inc., Fitch said.

Fitch noted that Republic has cut its outstanding debt by more than $600 million in the past eight months, and Fitch expects the company will reduce its debt over the next several years

Republic estimates that it will receive $639 in proceeds from the notes. Of that, Fitch said Republic will use $256 million for a tender offer for other senior unsecured notes maturing in 2010 and 2011.

The notes are due in 2019.

Republic Services stock added a penny to $25.62 in after-hours trading, following a loss of 12 cents in the regular session.