S&P upgrades Europcar

Standard & Poor’s said it raised the long-term corporate credit ratings on Europcar Groupe SA and wholly owned financing subsidiary, Europcar International SASU, to B+ from B.

The agency also said it removed the ratings from CreditWatch, where it was placed with positive implications in May.

The outlook is stable.

S&P also said it raised the rating on Europcar’s €350 million senior secured revolving credit facility to BB- from B+. The recovery rating on the revolver is unchanged at 2, indicating 70% to 90% expected default recovery.

The agency also said it raised the rating on EC Finance plc’s €350 million senior secured notes due 2021 to B+ from B and raised the recovery rating on the notes to 3 from 4, reflecting a view that recovery prospects for the senior secured notes have improved following the initial public offering. A 3 recovery rating indicates a 50% to 70% expected default recovery.

S&P also said it raised the rating on the €475 million senior notes due 2022 to B- from CCC+. The recovery rating on the senior notes is unchanged at 6, indicating 0 to 10% expected default recovery.

The ratings on the revolver, senior secured notes and senior notes also were removed from CreditWatch with positive implications.

The upgrades follow the completion of Europcar’s initial public offering and debt refinancing, S&P said, and considers an expectation of stronger leverage metrics in 2015 and 2016.

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