Moody's: Casella Waste notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the planned senior subordinated add-on notes of Casella Waste Systems, Inc. and affirmed the B3 corporate family and probability of default ratings.

Moody's said the Caa2 rating for the company's existing subordinated notes and Caa1 rating for its solid waste revenue bonds were affirmed, but noted that the ratings could each be raised due to the potential for the proposed refinancing to reduce loss severity for those instruments in the event of default.

The outlook remains negative.

The Caa1 rating on the planned subordinated notes reflects their expected recovery in a default scenario following the refinancing of the structurally senior second lien bonds with subordinated notes, the agency said.

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