Moody's rates Avis Budget loan Ba1, notes B2

Moody's Investors Service said it affirmed the B1 corporate family and probability of default ratings of Avis Budget Group, Inc.

The agency also said it assigned a Ba1 rating to the new $440 million senior secured term loan of Avis Budget Car Rental LLC, along with a B2 rating to the $250 million senior unsecured notes of AE Escrow Corp.

The proceeds, along with about $300 million in cash on hand, will be used to fund the $1 billion acquisition of Avis Europe plc.

The company's speculative-grade liquidity rating remains at SGL-3.

The outlook is stable.

These ratings reflect the complimentary strategic fit between the North American car rental operations of Avis and the European operations of Avis Europe, Moody's said.

The combination will provide Avis with a much-needed global presence, the agency said, and should enhance its growth opportunities with multi-national corporate clients and emerging markets.

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