S&P affirms Europcar

S&P said it affirmed its B+ corporate credit rating on Europcar Groupe SA. The outlook is stable.

At the same time, S&P affirmed its BB issue ratings on the upsized €500 million senior secured revolving credit facility due 2022. The recovery rating on the revolver is unchanged at 1, indicating an expectation of full recovery (90%-100%, rounded estimate 95%) in the event of a payment default.

S&P also affirmed its B+ issue ratings on the €350 million fleet bond due 2021. However, S&P has revised down the recovery rating to 4 from 3, indicating an expectation of average recovery (30%-50%, rounded estimate 30%) in the event of a payment default.

Lastly, S&P affirmed its B- issue ratings on the €600 million senior notes due 2022. The recovery rating is unchanged at 6, indicating an expectation of negligible recovery (0%-10%, rounded estimate 0%).

“The affirmation reflects our expectation that, despite a temporary increase in leverage and weaker credit metrics as a result of recent mergers and acquisitions (M&A), Europcar's credit ratios will remain within our aggressive financial risk category and overall consistent with the current rating during the next 12 months,” S&P said in a news release.

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