...November 12, 2020 - Airline travel, from which Parsippany, N.J.-based car renter Avis Budget Group Inc. generates the majority of its revenues, has declined steeply due to the coronavirus pandemic. Although this has resulted in sharply lower revenues and cash flow, and much weaker credit metrics in 2020 relative to 2019, we expect some modest improvement in 2021. - Avis Budget has reduced its fleet by cancelling new vehicle orders, and through the disposition of vehicles. - The company has also benefited from $2 billion of cost reductions and strong used-car prices upon disposition of its assets. - As of now, we expect air travel to begin to recover somewhat in 2021, but any delay will prolong weakness in credit metrics. - We are revising our liquidity assessment on Avis Budget to adequate from less than adequate based on the company's improved liquidity position at Sept. 30, 2020, which included unrestricted cash of $1.6 billion. - Therefore, we are affirming all ratings, including the...
