Standard&Poor's Ratings Services' ratings on Avis Budget Group Inc. remain on CreditWatch with negative implications, where they were placed on Jan. 25, 2008. We have lowered our ratings twice to current levels since the initial CreditWatch placement. The negative CreditWatch status reflects the company's continuing poor earnings outlook, due to weaker demand, pressure on pricing and on automobile resale values, and limited access to capital at higher prices. In the first nine months of 2008, Avis Budget's operating margin (after depreciation, but excluding a $1.3 billion non-cash impairment charge) declined to 8.7% from 10.8% in the prior-year period. We expect the deteriorating economy, reductions in U.S. airline capacity, and disruption in the credit markets to contribute to continued
