One of the largest U.S. car rental companies; and Operations typically generate adequate cash flow due to large noncash depreciation component in its expenses. Significant debt maturities—$3.7 billion—through 2010; Exposure to the troubled automobile manufacturing industry; A highly leveraged financial profile, with a significant portion of its assets secured; Both car rental and consumer truck rental operations tend to be very price competitive; and On-airport car rentals are subject to the level of airline travel, which is driven by economic cyclicality and global events. The ratings on Parsippany, N.J.-based Avis Budget Group Inc. reflect a highly leveraged financial profile; the price-competitive and cyclical nature of on-airport car rentals; its exposure to the troubled automobile manufacturing industry; and significant refinancing risk—with
