On Oct. 24, 2008, Standard&Poor's Ratings Services lowered its ratings on Avis Budget Group Inc., including lowering the corporate credit rating to 'B+' from 'BB'. All ratings remain on CreditWatch, where they were placed with negative implications on Jan. 25, 2008. Rating were subsequently lowered and maintained on CreditWatch on July 2, 2008. The downgrade is based on a continuing weak earnings outlook for the U.S. car rental industry, due to pressure on pricing and demand, which began earlier in 2008. The company also faces refinancing challenges related to an $1.5 billion asset-backed conduit facility that matures in late October, which will result in significantly higher pricing levels if and when it is renewed. Thus far, other car
