Moody’s rates United Rentals notes B1

Moody's Investors Service said it assigned a B1 rating to United Rentals (North America), Inc.'s (URI) proposed $750 million issuance of senior unsecured notes.

Net proceeds, together with $166 million of ABL revolver borrowings and current cash and cash equivalents, are expected to be used to redeem the majority of the 7 5/8% $1,325,000,000 of senior unsecured notes due 2022.

The rating on the notes reflects their pari passu status along with the company's other unsecured debt obligations per the indenture on the notes.

All other ratings, including the Ba3 corporate family rating, Ba3-PD probability of default rating, B1 senior unsecured debt ratings and SGL-2 liquidity rating are unchanged.

The outlook is stable.

Moody’s said United Rentals' Ba3 corporate family rating is constrained by the cyclical nature of its business (and the view that business has been slowing), extensive use of its balance sheet to fund capital investments, share repurchases and acquisitions. Nevertheless, the agency believes the company remains well positioned in the Ba3 rating category.

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