Moody’s upgrades Car Rentals

Moody’s Investors Service said it upgraded Car Rentals Parentco, SLU’s (Goldcar) corporate family rating to B1 from B2 and probability of default rating to B2-PD from B3-PD.

The agency also said it upgraded the rating on Car Rentals Subsidiary, SLU’s €275 million term loan B to B1 from B2, along with the rating on its €50 million term loan A and senior secured revolving credit facility to B1 from B2.

The outlook is stable.

The upgrades were triggered by Goldcar’s solid trading in 2015 and positive outlook for 2016, driven by continued rental transaction volume growth in Spain and the company’s ability to leverage its lean cost structure, Moody’s said.

The ratings are constrained by the company’s fairly high geographic concentration with focus on Spanish leisure car-rental market and its exposure to cyclical European Mediterranean tourism, the agency said.

The ratings are supported by the company’s leading position in the Spanish leisure car-rental market, lean operating structure and high occupancy rates, Moody’s added.

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