Fitch: Republic Services view positive

Fitch Ratings said it affirmed Republic Services, Inc.'s issuer default rating, senior unsecured credit facility and senior unsecured rating at BBB-; Allied Waste Industries, Inc.'s issuer default rating at BBB- and senior subordinated rating at BB+; Allied Waste North America's issuer default rating at BBB- and senior unsecured rating at BBB-; and Browning-Ferris Industries' issuer default rating at BBB- and senior unsecured rating at BBB-.

The outlook for Republic and its subsidiaries was revised to positive from stable.

Ratings reflect the waste services 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, according to the agency.

Republic's debt has fallen materially since the merger was completed in December 2008, and Fitch said it expects debt to decline further over the next several years as leverage reduction remains the company's top priority for free cash flow deployment.

By year-end, Fitch said it expects the company's EBITDA leverage to fall to slightly below 3x.

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