The ratings on Parsippany, N.J.-based Avis Budget Group Inc. reflect an aggressive financial risk profile and the price-competitive, cyclical nature of on-airport car rentals. The ratings also reflect the company's position as a major U.S. car rental company and the relatively stable cash flow its businesses generate, even during periods of economic weakness, because of the large noncash depreciation component. Standard&Poor's Ratings Services characterizes Avis Budget's business risk profile as weak. In September 2010, Avis Budget increased its bid for Dollar Thrifty Automotive Group Inc. (DTAG) to about $1.7 billion (based on Avis Budget's current stock price) through a combination of cash and stock, which resulted in DTAG shareholders' rejecting the bid by Hertz Global Holdings Inc. (parent
