On June 14, 2011, U.S. auto renter Avis Budget Group Inc. (parent of the Avis and Budget car rental brands) announced it had reached agreement to acquire U.K.–based car renter Avis Europe plc for a combination of cash, equity, and debt. We believe the acquisition could weaken Avis Budget's financial profile, based on the debt used to finance the transaction and the assumption of Avis Europe's debt, while it would aid Avis Budget's global competitive position. We are placing our ratings, including the 'B+' corporate credit rating, on Avis Budget Group on CreditWatch with negative implications On June 14, 2011, Standard&Poor's Ratings Services placed its ratings--including our 'B+' corporate credit rating--on Parsippany, N.J.-based auto renter Avis Budget Group
