Moody's gives Avis Budget loan Ba1, notes B2

Moody's Investors Service said it assigned a Ba1 rating to the $200 million upsizing of Avis Budget Car Rental LLC's existing $700 million senior secured term loan.

Moody's also assigned a B2 rating to the €250 million of senior unsecured notes issued by Avis Budget Finance plc; these notes are guaranteed on a senior unsecured basis by Avis Budget Car.

The proceeds of these issuances will fund the roughly $500 million purchase of Zipcar by Avis Budget Group, Inc., which is the parent company of Avis Budget Car and Avis Budget Finance.

The B1 corporate family rating, B1-PD probability of default rating and SGL-3 speculative grade liquidity ratings of Avis were affirmed.

The outlook is stable.

Moody's said the actions reflect its expectation that Avis will be able to harvest important operational synergies and long-term strategic benefits from the Zipcar acquisition.

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