...March 31, 2021 NEW YORK (S&P Global Ratings) March 31, 2021--S&P Global Ratings today assigned its '###' debt rating to Element Fleet Management Corp.'s proposed issuance of senior unsecured notes due 2024, in line with the existing '###' rated senior unsecured notes due 2025. Element expects to use net proceeds from this offering for working capital and general corporate purposes. We rate the new unsecured notes the same as our '###' issuer credit rating on the company (and in line with the existing rated senior unsecured notes due 2025) because the amount of nonrecourse secured debt is less than 50% of the capital structure. That said, with C$7.8 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 by nonrecourse secured debt,...
