S&P rates Europcar BB-

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Europcar Groupe SA.

The outlook is stable.

At the same time, S&P said it assigned its BB issue rating to Europcar's proposed €250 million senior secured revolving credit facility with a recovery rating of 1.

S&P added that the ratings reflect Europcar's high financial leverage following its LBO by French investment company Eurazeo.

The ratings also reflect the competitive, cyclical and asset-intensive nature of the car rental industry and the group's lack of global earnings diversity outside its main Western European markets, S&P said, noting that these negative factors are mitigated to a large extent by Europcar's leading position in the European car rental market, substantial operational flexibility and efficiency and good competitive position in relation to major peers.

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