S&P lowers RSC Equipment

Standard & Poor's said it lowered its corporate credit rating on RSC Equipment Rental Inc. to B from B+ and removed the rating from CreditWatch, where it had been placed with negative implications on Dec. 16.

The agency said it subsequently withdrew the rating.

At the same time, S&P said it raised, and removed from CreditWatch with positive implications, its issue ratings on the company's $200 million senior unsecured notes due 2019 and $650 million senior unsecured notes due 2021 to B from B-.

The agency also revised the recovery ratings on these two issues to 4, indicating an expectation of average recovery in a payment default, from 6.

According to S&P, RSC's acquisition by United Rentals Inc. closed on Monday and, as part of the transaction, United Rentals is assuming RSC's existing unsecured debt and repaying other debt of the company.

"The upgrade of RSC's senior unsecured notes still outstanding reflects our expectation that recovery prospects for these issues have improved because of the acquisition," said S&P's credit analyst John Sico said in a news release.

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