Fitch rates CAR notes BB+

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BB+ and a senior unsecured rating of BB+ to CAR Inc.

The outlook is stable.

Fitch also said it assigned an expected rating of BB+ to CAR’s proposed senior unsecured notes.

The notes are rated at the same level as CAR’s senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

CAR’s ratings are supported by its dominant market share in the car-rental market in China, significant flexibility to scale down capital expenditure during downturns and strong financial profile with low net leverage, Fitch said.

The ratings are constrained by its short track record in used car sales and regulatory uncertainty in the car rental industry in China, which is in its early stages of development, the agency added.

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