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DBRS cuts Avis Budget
DBRS said it downgraded the ratings of Avis Budget Group, Inc. and its related subsidiary Avis Budget Car Rental, LLC, including the company’s long-term issuer rating to B from BB (low). The company’s ratings remain under review with negative implications.
“The ratings action reflects the severe pressure that the coronavirus disease (Covid-19) is placing on Avis Budget’s credit fundamentals. The material decline in airline passenger travel as well as the significant contraction in local off-airport rental car demand, is pressuring the company’s revenues and cash flows. These headwinds were evident in Avis Budget’s steeper year-on-year net loss in 1Q20,” DBRS said in a press release.
DBRS said it expects the company’s results to improve in the second quarter as the economy starts to reopen and travel restrictions are loosened.
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