Moody's rates Europcar notes Caa1

Moody's Investors Service said it assigned a provisional Caa1 rating (LGD 6, 94%) to the proposed senior subordinated unsecured notes worth up to €400 million and maturing in 2018, to be issued by Europcar Groupe SA.

The proceeds will fund an early repayment of €375 million worth of senior subordinated unsecured notes, due in 2014.

Moody's also said it affirmed Europcar's B2 corporate family rating and B2 probability-of-default rating, along with the B2 rating of the company's senior secured notes and B3 rating of the company's senior subordinated secured notes.

The outlook remains stable.

The ratings reflect the notes' junior positioning within the company's capital structure and the fact that they have been issued at the holding company level without any guarantees provided by operating companies or collateral, Moody's said.

The ratings also consider the subordination of the senior subordinated unsecured notes to the €425 million worth of senior subordinated secured notes that also are outstanding, the agency said.

The affirmation reflects Europcar's gradually improving performance as evidenced in its third quarter results of 2010, Moody's added.

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