Element Fleet Management Corp.'s $750 Million Commercial Paper Program Assigned 'A-2' Short-Term Rating

NEW YORK (S&P Global Ratings) Jan. 14, 2025--S&P Global Ratings today assigned its 'A-2' short-term issue rating to Element Fleet Management Corp.'s new $750 million commercial paper (CP) program. Element's $2.42 billion revolving credit facility due November 2027 (the company generally renews this facility annually for three-year terms) will provide a backstop for the CP program. The borrowings under the CP program will rank pari passu with all Element's existing and future senior debt. We expect Element to maintain its industry-leading position in the automotive fleet management industry, continue to generate stable earnings, and maintain ongoing access to wholesale financing markets. We expect the company to maintain EBIT coverage of 1.7x-2.4x and debt to total capital of 70%-80%. Criteria

...January 14, 2025 NEW YORK (S&P Global Ratings) Jan. 14, 2025--S&P Global Ratings today assigned its 'A-2' short-term issue rating to Element Fleet Management Corp.'s new $750 million commercial paper (CP) program. Element's $2.42 billion revolving credit facility due November 2027 (the company generally renews this facility annually for three-year terms) will provide a backstop for the CP program. The borrowings under the CP program will rank pari passu with all Element's existing and future senior debt. We expect Element to maintain its industry-leading position in the automotive fleet management industry, continue to generate stable earnings, and maintain ongoing access to wholesale financing markets. We expect the company to maintain EBIT coverage of 1.7x-2.4x and debt to total capital of 70%-80%....

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