On July 2, 2008, Standard&Poor's Ratings Services lowered its ratings on Avis Budget Group Inc., including lowering the corporate credit rating to 'BB' from 'BB+'. All ratings remain on CreditWatch with negative implications, where they were originally placed on Jan. 25, 2008. The rating actions are based on the company's reduced earnings guidance that it released on July 2, 2008. Ratings remain on CreditWatch because weaker demand caused by reduced domestic airline capacity and passengers beginning in September 2008 could result in sustained earnings pressure. At the same time, our concerns pertaining to refinancing risk have been alleviated somewhat by a financing the company completed earlier this year. Parsippany, N.J.-based Avis Budget, the parent of the Avis and
