Moody's lifts Avis view to positive

Moody's Investors Service said it affirmed the ratings on Avis Budget Group, Inc. and its subsidiaries.

The ratings affirmed include Avis Budget Car Rental LLC's secured bank facility at Baa3 and senior unsecured notes at B1, along with Avis Budget Finance plc's senior unsecured at B1.

The agency also said it changed the outlook to positive from stable.

The ratings reflect an expectation that initiatives undertaken by the company will enable it to maintain a competitive position in the U.S. car-rental sector, Moody's said.

Despite the headwinds in 2016 and 2017, Avis continued to invest heavily in a broad range of initiatives that focus on achieving profitable revenue growth, lowering operating and vehicle costs and growing its mobility services, the agency said.

The ratings also consider an expectation for a stronger market for U.S. car-rental companies, Moody's said.

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