S&P upgrades Europcar Mobility

S&P said it upgraded Europcar Mobility Group to BB- from B+ and raised the ratings on the company's debt.

The agency also said it assigned a B rating to the proposed €450 million senior notes due 2026.

The recovery rating on the notes is 6, indicating negligible expected recovery in a default, S&P noted.

Europcar plans to issue the proposed notes and increase its revolving credit facility by €150 million in order to refinance in full its €600 million senior notes due 2022.

The agency said it will withdraw the rating on the €600 million senior notes due 2022 when the transaction is completed.

Europcar has made good progress in the integration of its recent acquisitions of Goldcar and Buchbinder, the agency said, and in the realization of expected cost synergies.

The group also has reported sound operating performance in 2018 and moderately improved its credit metrics, S&P said.

S&P said it expects the company's margins will moderately improve over the next 12- to 14-months, particularly on the back of the group's focus on the faster growing, higher margin and lower cost segment.

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