Fitch affirms Waste Connections on merger news

Fitch Ratings said it affirmed Waste Connections, Inc.’s issuer default rating at BBB, along with the BBB ratings on its unsecured credit facility, unsecured term loan and senior unsecured notes.

The outlook is stable.

The ratings were affirmed following news that Waste Connections entered into a definitive agreement Jan. 19 to merge in an all-stock transaction with Progressive Waste Solutions Ltd., Fitch said.

The transaction was unanimously approved by the boards of both companies and is expected to close in the second quarter of 2016, the agency said.

The merger would combine the third- and fourth-largest North American waste management services companies, Fitch said.

Fitch said it believes the deal allows Waste Connections to significantly expand its size and scale while preserving a moderate leverage level and significant financial flexibility.

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