Element Fleet Management Corp.'s Proposed Senior Unsecured Notes Due 2027 Rated 'BBB'

NEW YORK (S&P Global Ratings) June 21, 2023--S&P Global Ratings today assigned its 'BBB' issue-level rating to Element Fleet Management Corp.'s (Element's; BBB/Stable/--) proposed offering of senior unsecured notes due 2027. Our issue-level rating on the proposed notes is the same as our issuer credit rating on Element. We view this transaction as leverage neutral as the company intends to use the proceeds to pay down existing debt. Despite macroeconomic headwinds, 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. Pro forma for this issuance, we expect EBIT coverage of 2.4x-3.0x, debt to total capital of 70%-80%, and funds from operations to

...June 21, 2023 NEW YORK (S&P Global Ratings) June 21, 2023--S&P Global Ratings today assigned its '###' issue-level rating to Element Fleet Management Corp.'s (Element's; ###/Stable/--) proposed offering of senior unsecured notes due 2027. Our issue-level rating on the proposed notes is the same as our issuer credit rating on Element. We view this transaction as leverage neutral as the company intends to use the proceeds to pay down existing debt. Despite macroeconomic headwinds, 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. Pro forma for this issuance, we expect EBIT coverage of 2.4x-3.0x, debt to total capital of 70%-80%, and funds from operations to debt of 40%-50% in the next 18-24 months....

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