...- The volume of commercial air travel, which Parsippany, N.J.-based car renter Avis Budget Group Inc. depends on to generate the majority of its revenue, has declined steeply due to the coronavirus pandemic. This has sharply reduced the company's revenue and cash flow and led it to report significantly weaker credit metrics in 2020 than in 2019, though we expect a modest improvement in its performance in 2021. - Avis Budget has reduced its vehicle fleet through dispositions and by cancelling new orders. The company has also benefited from over $2.5 billion of cost reductions and strong used car prices, which have enabled it to generate good returns on its dispositions. In addition, we currently expect the volume of commercial air travel will begin to recover somewhat later in 2021, which will lead to increased demand for car rentals and, in turn, improve the company's credit metrics. - Therefore, we are revising our outlook on Avis Budget to stable from negative and affirming our 'B+' issuer...
