S&P ups WCA Waste Systems view to positive

Standard & Poor's said it revised its outlook on WCA Waste Systems Inc. to positive from stable and affirmed the existing B corporate credit rating.

The outlook revision reflects the expected strengthening of WCA's financial profile because of a proposed $75 million convertible preferred equity investment by Ares Management, the agency said.

At the same time, based on preliminary terms and conditions, S&P added that it assigned its B- rating to WCA Waste Corp.'s proposed $150 million of senior unsecured notes due 2014.

S&P noted that the ratings on WCA reflect its very modest size and narrow scope of activities, meaningful exposure to construction and demolition cycles, the risks associated with an active growth strategy that includes additional debt-financed acquisitions and its highly leveraged balance sheet.

These factors are only partially offset by favorable overall industry characteristics and an experienced senior management team with a proven acquisition and integration track record, the agency said.

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