S&P upgrades Casella Waste

S&P said it raised the issuer credit rating on Casella Waste Systems Inc. to BB- from B+ and the ratings on the company's unsecured bonds to B from B-.

The upgrades reflect Casella's strong operating performance, the sizable debt reduction stemming from its recent equity capital raise and an expectation that the company will maintain its positive growth trends over the next 12 months.

Fiscal year 2018 was another strong year for Casella Waste as improved pricing mix and landfill volumes more than offset higher cost pressures, S&P said.

The company also fully repaid its revolver balance with proceeds from its $100 million equity capital raise, resulting in improved pro forma credit metrics, the agency said.

The stable outlook reflects an expectation that further improvement in Casella's operating performance, combined with ongoing bolt-on acquisitions, will enable the company to maintain leverage of less than 4x over the next 12- to 18-months, S&P said.

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