Element Fleet Management Corp. Assigned 'BBB' Rating; Outlook Is Stable

Element is the largest commercial fleet leasing company in North America following the acquisition of GE Capital's fleet operations in 2015 and PHH Corp.'s fleet management business in 2014. Element is nevertheless largely reliant on the asset-backed security market to fund its fleet vehicles, and its balance sheet is almost entirely encumbered. We are assigning a 'BBB' long-term issuer credit rating on Element Fleet Management Corp. Our stable outlook reflects our expectation that Element will maintain its industry-leading position in the automotive fleet leasing industry, continue to improve profitability through transformation initiatives, and maintain ongoing access to wholesale financing markets. We expect it will maintain EBIT coverage of 1.70x-2.20x, debt to total capital of 75%-78%, and funds from operations to

...October 31, 2019 - Element is the largest commercial fleet leasing company in North America following the acquisition of GE Capital's fleet operations in 2015 and PHH Corp.'s fleet management business in 2014. - Element is nevertheless largely reliant on the asset-backed security market to fund its fleet vehicles, and its balance sheet is almost entirely encumbered. - We are assigning a '###' long-term issuer credit rating on Element Fleet Management Corp. - Our stable outlook reflects our expectation that Element will maintain its industry-leading position in the automotive fleet leasing industry, continue to improve profitability through transformation initiatives, and maintain ongoing access to wholesale financing markets. We expect it will maintain EBIT coverage of 1.70x-2.20x, debt to total capital of 75%-78%, and funds from operations to debt of 30%-40%. NEW YORK (S&P Global Ratings) Oct. 31, 2019--S&P Global Ratings said today it assigned its '###' long-term issuer credit rating...

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