Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for Europcar Groupe SA > News item |
Moody's may downgrade Europcar
Moody's Investors Service said it placed the Ba3 corporate family rating, B1 subordinated secured notes and B2 senior subordinated notes of Europcar Groupe SA on review for possible downgrade.
The review was prompted after Europcar announced plans to acquire the European businesses of U.S. car rental group Vanguard (rated B1). The agency said its review will evaluate if expected improvements in Europcar's business profile and cash flow generation ability are in line with the increased absolute financial debt, given that Europcar's debt protection measures before the transaction - with a debt-to-EBITDA ratio of 5.6x expected for 2006 - have been weak for the Ba3 corporate family rating category.
Moody's said it expects the acquisition will improve Europcar's position in relation to several factors such as scale, market position, diversification and the ability to improve the cost structure due to synergy potential.
On the other hand, the transaction could result in higher absolute debt levels requiring greater visibility of stable cash flow generation of the acquired business, the agency added.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.