The ratings on Parsippany, N.J.-based Avis Budget Group Inc. (parent of the Avis and Budget car rental brands and the Budget consumer truck rental brand) reflect the company's aggressive financial profile and the price-competitive and cyclical nature of on-airport car rentals. The ratings also incorporate the company's position as a major global car rental company after the Oct. 3, 2011, acquisition of U.K. car renter Avis Europe PLC and the relatively stable cash flow its businesses generate, even during periods of economic weakness, due to the large noncash depreciation component. Standard&Poor's Ratings Services characterizes Avis Budget's business risk profile as "weak" and its financial risk profile as "aggressive." The acquisition of Avis Europe will increase Avis Budget's global
