The ratings on Parsippany, N.J.-based Avis Budget Group Inc. reflect a highly leveraged financial profile; the price-competitive and cyclical nature of on-airport car rentals; its exposure to the troubled automobile manufacturing industry; and significant refinancing risk—with close to $4 billion of debt maturities through 2010. Ratings also incorporate the company's position as a major U.S. on-airport car renter and the strong cash flow this business generates. Avis Budget (parent of the Avis and Budget car rental brands and the Budget consumer truck rental brand) experienced a weakening in its credit ratios in 2008 due to several reasons. Similar to other car and consumer truck renters, it faced a combination of lower demand and pricing in both those operations; restructuring charges;
