Standard&Poor's Ratings Services' ratings on Avis Budget Group Inc. reflect its improved financial profile resulting from continued supply-demand balance in the car rental sector and benefits from cost-cutting. The ratings also reflect the company's highly leveraged financial profile, the price-competitive and cyclical nature of on-airport car rentals, and improving (albeit still somewhat weak) operating performance. We characterize Avis Budget's business profile as weak and its financial risk profile as aggressive. In late July 2010, Avis Budget announced a $1.33 billion bid for Dollar Thrifty Automotive Group Inc. (DTAG). Avis Budget's announcement followed an earlier $1.2 billion bid for DTAG by Hertz Corp. Our preliminary view of the Avis Budget bid is that DTAG's less-leveraged capital structure, its earnings,
