The ratings on Avis Budget Group Inc. reflect the company's highly leveraged financial profile; the price-competitive and cyclical nature of on-airport car rentals; and recent depressed (albeit improving) operating performance. The 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 financial profile beginning in 2008 due to several reasons. Similar to other car and consumer truck renters, it experienced a combination of lower demand and pricing in those operations; restructuring charges; and an increase in operating expenses and vehicle costs, due to weak used car prices. In
