S&P affirms Localiza Rent-a-Car

S&P said it affirmed its BB+ global scale and brAAA Brazilian national scale ratings on Localiza Rent-a-Car SA.

At the same time, the agency affirmed the brAAA issue-level rating on Localiza's debentures.

The stand-alone credit profile is still bbb- and the outlook is stable.

S&P said the affirmation reflects the company's above-average operating efficiency, dominant market position and overall size, which gives it a competitive edge (a strong brand with larger number of stores and greater discounts with manufacturers).

Also, the recent agreement with Hertz allows Localiza to associate its brand with that of a larger global player, which can create demand in the near term and increase geographic diversity, the agency added.

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