Moody's downgrades WCA Waste, rates notes B3

Moody's Investors Service said it downgraded the corporate family and probability of default ratings of WCA Waste Corp. to B2 from B1.

The agency also said it assigned a B3 (LGD 5, 76%) rating to the planned $175 million senior notes due 2019.

The agency also said it affirmed its $150 million senior notes due 2014 at B3 (LGD 5, 78%) and speculative grade liquidity rating at SGL-3.

The outlook is stable.

The proceeds will fund WCA's tender offer for its $150 million senior notes due 2014 with a modest increase in debt following the transaction, Moody's said.

The downgrade follows credit metrics that have weakened to levels on par with the lower rating level, the agency said.

The outlook is still stable because sector operating fundamentals should gradually improve with the economy, helping WCA continue its acquisition spending without continuation of the declining credit metric trend evidenced since 2009.

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