Moody's: Allied Waste, Republic unaffected

Moody's Investors Service said Allied Waste Industries, Inc.'s B1 corporate family rating and Republic Services, Inc.'s Baa1 senior unsecured rating are not affected by the companies' possible merger.

The outlook for Allied's corporate family rating is positive. The outlook for Republic's senior unsecured rating is stable.

"The combination of the Republic and Allied businesses would create a more formidable competitor in the solid waste business and is a logical step in industry consolidation," Jonathan Root, Moody's analyst, said in a written statement.

"Depending on the structure and terms of any transaction that could emerge, the ratings of Allied could potentially benefit from its becoming part of a larger organization. The ratings of Republic could potentially face downwards pressure if credit metrics of the combined business were to weaken from the current standalone levels of Republic," the analyst said.

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