S&P affirms Europcar bond

S&P said it affirmed its BB- issue credit rating on the increased fleet bond of Europcar.

The company said it intends to increase the fleet bond amount by €150 million, bringing the total bond size to €500 million.

In December, Europcar completed the acquisition of Car Rentals Parentco SLU (Goldcar). Europcar is currently progressively integrating Goldcar's fleet financing into its existing securitization program.

It recently upsized its senior asset revolving facility to €1.7 billion from €1.3 billion. Subsequently, the group needs to increase the credit enhancement to the revolver and has therefore chosen to seek to tap the fleet bond, the agency explained.

“The increase in debt will only marginally decrease our view of recovery expectations because the increase in debt is supported by an increase in assets and value,” S&P said in a news release.

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