Moody's rates EnviroSolutions loans B2

Moody's Investors Service said it assigned a B2 rating to the proposed $215 million senior secured credit facility of EnviroSolutions Real Property Holdings Inc. and its co-borrowers while also assigning a senior implied rating of B2 and a stable outlook.

The facilities include a $40 million senior secured revolver due 2011 and a $175 million senior secured term loan B due 2012.

The ratings reflect the short operating history of the company and its growth through a series of acquisitions, the small size of the company, revenue concentration from a limited number of properties and geographic regions, significant leverage and material projected capital expenditure needs related to the development of recently acquired landfills as well as the implementation of its rail strategy, Moody's said.

On the other hand, the agency said the ratings also reflect leading positions in key local markets, good projected liquidity upon the closing of the proposed facility and expected improvements in cash flows from internalization of waste to landfills under development.

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