Fitch assigns Republic notes BBB-

Fitch Ratings said it assigned a rating of BBB- to the $600 million in new 5.25% senior unsecured notes due 2021 issued by Republic Services, Inc.

Proceeds from the notes will be used to fund the company's redemption of $450 million of 7.875% senior notes due 2013 issued by Republic's Allied Waste North America subsidiary and a portion of its redemption of $230 million of 4.25% senior subordinated convertible debentures due 2034 issued by Republic's Allied Waste Industries, Inc. subsidiary.

The outlook is positive.

Fitch said that Republic's ratings reflect the solid waste collection and disposal company's significant free cash flow generation potential and financial flexibility, offset somewhat by a heavy debt load following last year's merger with Allied Waste.

However, over the past three quarters, Republic has reduced its outstanding consolidated debt by over $600 million, and Fitch expects debt to decline further throughout the next several years as leverage reduction continues to be the company's top priority for free cash flow deployment.

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