Moody's cuts Europcar view to negative

Moody's Investors Service said it affirmed the B1 corporate family rating of Europcar Groupe SA, along with the B2 rating on its senior subordinated secured notes and B3 rating of its senior subordinated unsecured notes.

The outlook was changed to negative from stable.

The affirmation recognizes the relative resilience of Europcar's operating performance in recent quarters in an increasingly challenging competitive and macroeconomic environment for rental car operators, supported by a continued top-line revenue growth driven by rising rental days, a more efficient utilization of the fleet and cost reduction measures, Moody's said.

The agency noted that the company's performance is under constant pressure from cost inflation, particularly rising fleet holding and interest costs and the industry's limited tolerance to adjust rental prices, the agency said.

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