S&P affirms Covanta

Standard & Poor’s said it affirmed its BB- corporate credit ratings on Covanta Holding Corp. and Covanta Energy LLC. The outlook is stable.

S&P also affirmed the BB+ rating on Covanta Energy’s senior secured debt. The recovery rating on this debt is 1, indicating expectations for very high (90% to 100%) recovery in a payment default.

In addition, S&P affirmed the B rating on Covanta Holding’s unsecured debt. The recovery rating on this debt is 6, indicating expectations for negligible (0% to 10%) recovery in a payment default.

“We have revised three elements of our assessment of Covanta’s creditworthiness, which collectively results in an affirmation of the BB- corporate credit rating,” said S&P credit analyst Kimberly Yarborough in a news release.

Weaker financial performance, due largely to weak metals and power prices in the U.S. market, is essentially balanced by what S&P views as a more favorable financial policy and comparison to peers in its industry, the agency said.

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