Fitch rates Waste Management loan BBB

Fitch Ratings said it assigned a BBB rating to Waste Management, Inc.'s new $2 billion revolving credit facility due 2013. The issuer default rating is BBB.

The outlook is stable.

The new facility replaced Waste Management's existing five-year $2.4 billion revolving credit facility that would have expired in August 2011.

Fitch does not believe the $400 million reduction in facility commitments will have a material impact on Waste Management's liquidity profile. Historically, Waste Management has primarily used its revolver to support letters of credit, and the agency expects this practice to continue over the intermediate to long term.

Waste Management's ratings reflect the waste-services company's continued financial flexibility and free cash flow generation potential despite the recession-driven decline in collection and disposal volumes, Fitch said.

Lease-adjusted leverage at March 31 was 3.0 times.

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