Moody’s downgrades CAR to Ba2

Moody's Investors Service said it downgraded CAR Inc.'s corporate family and senior unsecured debt ratings to Ba2 from Ba1.

The outlook is negative.

"The downgrade reflects our view that CAR will continue to show lower gross profit margins, because of strong competition in China's auto rental industry over the next 12-18 months," Moody's vice president and senior analyst Gerwin Ho said in a news release.

"The downgrade also takes into account the company's higher financial risk, due to its rising debt leverage, which is high when compared with Moody's-rated global auto rental peers."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.