S&P rates Avis loan BB

Standard & Poor's said it assigned a BB rating to Avis Budget Car Rental LLC's $500 million term loan C due in 2019.

The agency also said it assigned a 1 recovery rating to this issue to indicate an expectation that lenders would receive 90% to 100% expected recovery in a default.

Avis Budget is the major operating subsidiary of Avis Budget Group Inc. The proceeds will be used to pay off existing term loan Bs.

The ratings reflect the company's aggressive financial risk profile and the price-competitive and cyclical nature of on-airport car rentals, S&P said.

The company's credit metrics are expected to remain relatively consistent over the next two years as the company integrates Avis Europe's operations, the agency said.

© 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.