S&P rates Avis loan BB

Standard & Poor's said it assigned its BB rating to Avis Budget Car Rental LLC's $200 million add-on to its $700 million term loan C. The recovery rating is 1, indicating an expectation that lenders would receive very high (90%-100%) recovery in a payment default scenario.

S&P said its ratings on Avis Budget (parent of the Avis and Budget car rental brands and the Budget consumer truck rental brand) reflect the company's "aggressive" financial profile, the price competitive and cyclical nature of on-airport car rentals, and a significant amount of secured assets. The ratings also incorporate the company's position as one of the largest global car rental companies, the relatively stable cash flow the business generates, and S&P's expectation that Avis Budget's operating performance will continue to improve.

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