DBRS cuts Avis Budget

DBRS said it downgraded the ratings of Avis Budget Group, Inc. and its related subsidiary Avis Budget Car Rental, LLC, including the company’s long-term issuer rating to B from BB (low). The company’s ratings remain under review with negative implications.

“The ratings action reflects the severe pressure that the coronavirus disease (Covid-19) is placing on Avis Budget’s credit fundamentals. The material decline in airline passenger travel as well as the significant contraction in local off-airport rental car demand, is pressuring the company’s revenues and cash flows. These headwinds were evident in Avis Budget’s steeper year-on-year net loss in 1Q20,” DBRS said in a press release.

DBRS said it expects the company’s results to improve in the second quarter as the economy starts to reopen and travel restrictions are loosened.

© 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.