Summary: Avis Budget Group Inc.

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 an 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, because of large noncash depreciation. Standard&Poor's Ratings Services characterizes Avis Budget's business risk profile as "fair," its financial risk profile as "aggressive," and its liquidity as "adequate" under our criteria. The acquisition of Avis Europe

...(Editor's Note: In the liquidity analysis section of this article, Standard & Poor's incorrectly referenced its 2011 criteria, which does not apply to transportation equipment leasing companies. We published an updated summary on Avis Budget Group Inc. on Jan. 5, 2016, that reflects our liquidity analysis using the applicable "2008 Corporate Criteria: Analytical Methodology" as well as other developments since this article was published.) Credit Rating: B+/Stable/--...

Summary