S&P lowers RSC notes to BB-

Standard & Poor's said it lowered its issue-level rating on RSC Equipment Rental Inc.'s proposed $400 million senior secured notes offering to BB- from BB and changed the recovery rating to 2 from 1.

The outlook is stable.

The agency said the revision reflects the upsizing of the bond offering from $300 million, which reduces the recovery prospects on these notes.

The B+ corporate credit rating on RSC reflects its aggressive financial profile, which S&P said more than offsets its position as one of the largest providers of construction equipment rentals.

The agency said RSC operates in the cyclical, highly competitive and fragmented equipment rental sector but has good geographic, product and customer diversity and a well-maintained and relatively young fleet.

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