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S&P slices Avis Budget
S&P said it lowered all its ratings for Avis Budget Group Inc., including the issuer rating to B+ from BB.
All ratings remain on CreditWatch, where S&P placed them with negative implications on March 16, the agency said.
“We expect Avis Budget’s credit metrics to weaken sharply in 2020 due to the impact of the coronavirus. Avis Budget generates most of its revenues at airports globally and thus relies on airline passenger travel. To offset the steep decline in air travel and demand for its vehicles, the company is reducing costs and its fleet by cancelling orders for new vehicles and attempting to sell vehicles,” said S&P in a press release.
“The CreditWatch resolution will focus on challenges the car rental industry faces, including levels of capital spending, the impact of used car prices on asset sales, wider access to the ABS market, liquidity, and covenant relief,” the agency said.
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