S&P rates IESI loans BB+

Standard & Poor's said it affirmed the BB long-term corporate credit rating of IESI Corp. and assigned a BB+ rating with a recovery rating of 2 to the company's amended $770 million senior secured credit facility, which consist of a $195 million term loan B due 2012 and a $575 million revolving credit facility due 2010.

The outlook is stable.

The agency said the ratings on IESI are based on the consolidated credit profile of its parent, BFI Canada Income Fund, which exercises management control and decision-making on IESI's business and financial strategy.

In turn, the parent's credit profile reflects the limited diversity of its operating subsidiaries, continued reliance on landfill expansion and acquisitions for growth, relatively high exposure to landfill permitting risks and the adoption of a more aggressive gearing target following debt-financed acquisitions, S&P said.

These factors are offset by IESI's efficient operations, favorable industry growth supported by recession-resistant demand, relatively low exposure to the cyclical construction and demolition segment and an improving market position in its selected regional markets, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.