S&P boosts Avis

Standard & Poor's said it raised its corporate credit rating on Avis Budget Group Inc. to B+ from B- while it also raised the other ratings on the company by two notches, and the recovery ratings on the company's secured and unsecured debt remain unchanged.

The outlook is now stable.

According to the agency, the ratings on Avis Budget reflect the company's highly leveraged financial profile; the price-competitive and cyclical nature of on-airport car rentals; and improving - albeit still somewhat depressed - operating performance.

The ratings also incorporate the company's position as a major U.S. on-airport car renter and the strong cash flow this business generates, the agency added.

"Avis Budget's operating performance has improved over the past year, reflecting a better supply demand balance in the industry and successful cost-cutting measures," said S&P credit analyst Lisa Jenkins.

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