S&P rates Avis loan BB

Standard & Poor's said that it has assigned a BB issue-level rating to Avis Budget Car Rental LLC's $1.25 billion secured revolver maturing in 2016. The recovery rating is 1, indicating the expectation that lenders would receive very high (90% to 100%) recovery of principal in the event of a payment default.

The revolver is refinancing the existing $193 million revolver that matures in 2011 and the $983 million revolver that matures in 2013.

The B+ corporate credit rating and stable outlook is unchanged.

The ratings on Avis reflect its aggressive financial profile and the price-competitive and cyclical nature of on-airport car rentals, the agency said.

The ratings also incorporate the company's position as a major U.S. car rental company and the relatively stable cash flow its businesses generate, even during periods of economic weakness, due to the large noncash depreciation component, the agency added.

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