S&P puts NationsRent on positive watch

Standard & Poor's said it placed its ratings on NationsRent Cos. Inc., including its B+ corporate credit rating on CreditWatch with positive implications.

This action results from the announcement by Ashtead Group plc (BB-/stable) that it will acquire NationsRent for about $1 billion including the assumption of about $400 million of its debt, which is expected to be tendered for cash, S&P said, noting that it will withdraw its ratings on NationsRent's outstanding notes when the transaction is completed, which is expected at the end of August.

According to the agency, the combination of NationsRent and Ashtead's Sunbelt Rentals unit will form the third-largest construction equipment rental firm in the United States.

S&P said that while the industry remains highly fragmented and competitive, it has recovered from a cyclical slump in non-residential construction spending and is poised for modest growth in this stage of the cycle.

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