Moody's gives RSC notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to RSC Equipment Rental, Inc.'s proposed issuance of $200 million of unsecured debt.

Proceeds from the issuance will be used to pay down second-lien debt, Moody's said, noting that it also affirmed the B3 corporate family rating and all other existing debt ratings.

The outlook is stable.

The new issuance benefits the company by extending a portion of the $1.5 billion of debt scheduled to mature in 2013, the agency said.

The company's B3 corporate family rating reflects Moody's expectation that demand for the equipment rental services will remain depressed well into 2010, resulting in declining use and rental rates.

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