S&P drops EnviroSolutions outlook to stable

Standard & Poor's said it revised its outlook on EnviroSolutions Holdings Inc. to stable from positive.

At the same time, the agency said it affirmed all of its ratings on EnviroSolutions, including the B- corporate credit rating.

S&P noted that the outlook revision reflects the lower likelihood of an upgrade in the near term, adding that the ratings on EnviroSolutions reflect its very modest size and narrow scope of activities, negative free cash flow to fund the development and expansion of acquired landfills and a highly leveraged financial profile.

These factors are only partially offset by favorable overall industry characteristics and the company's decent competitive positions in two densely populated regional markets, the agency added.

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