Moody's lifts Republic Services view to positive

Moody's Investors Service said it changed the outlook of Republic Services, Inc. and subsidiaries to positive from stable.

The agency also said it affirmed the company's existing ratings, including the Baa3 senior unsecured ratings.

The positive outlook reflects an expectation of earnings and cash flow growth at Republic that could yield credit metrics that are supportive of a higher rating, Moody's said.

With already strong EBITDA margins of about 30%, Republic is well positioned to capitalize on waste stream growth that will likely emerge as the economic recovery progresses, the agency said.

Waste volumes contracted during the recession and recovery has lagged, in part because of persistently high unemployment levels and weak construction activity, Moody's said.

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