Moody's bumps up Avis

Moody's Investors Service said it upgraded the senior unsecured rating of Avis Budget Car Rental LLC and Avis Budget Finance plc to B1 from B2. The agency affirmed the Ba1 senior secured rating.

The agency also raised Avis Budget Rental Car’s corporate family rating to Ba3 from B1 and the probability of default rating to Ba3-PD from B1-PD. The speculative grade liquidity rating was upgraded to SGL-2 from SGL-3.

“The ratings upgrade reflects Moody's expectation that Avis will generate robust earnings and returns, despite a change from unusually favorable market conditions that will result in lower revenue per day, abating capital gains, and higher interest expense. The affirmation of the senior secured rating reflects the sizeable proportion of senior secured debt in Avis' capital structure, including the $725 million outstanding under the term loan C which the company arranged in March 2022,” the agency said in a press release.

The outlook is stable.

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