...May 28, 2020 NEW YORK (S&P Global Ratings) May 28, 2020--S&P Global Ratings today said it assigned its '###' debt rating on Element Fleet Management Corp.'s (###/Stable/--) proposed offering of senior unsecured notes due 2025. The company intends to use the net proceeds from the notes to repay its debentures due on June 30, 2020. Pending such use, Element intends to initially apply the net proceeds from this offering to temporarily reduce borrowings under its senior credit facility. We rate the new unsecured notes the same as our '###' issuer credit rating on the company because the amount of nonrecourse secured debt is less than 50% of the capital structure. That said, with C$10.5 billion in vehicle management asset-backed debt, a significant portion of Element's assets remain encumbered, albeit on a nonrecourse basis. The senior unsecured credit facility is subject to covenant tests to remain accessible. If, as a result of a covenant breach, the senior unsecured credit facility is refinanced...
