S&P stabilizes Enterprise Holdings view

S&P said it revised its outlook for Enterprise Holdings Inc. to stable from positive and affirmed its A- issuer rating.

“With rising debt levels to finance increased capital spending, somewhat lower operating profits due to increased vehicle expense as market conditions normalize, and increased interest expense, we expect Enterprise's credit metrics to moderate through fiscal year ending July 31, 2025, but to remain in line with our expectations,” S&P said in a statement.

The agency said it projects the company's FFO to debt in the mid-50% area through 2025 compared with 70%-80% in 2022-2023; EBIT interest coverage of about 7x-9x, compared with the mid-teens percent area; and debt to capital of no more than 45%, compared with the mid-30% area.

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