S&P upgrades Avis Budget Group

Standard & Poor's said it raised its long-term ratings on Avis Budget Group Inc., including the corporate credit rating, to B- from CCC+.

The outlook is positive.

S&P also raised its recovery rating on Avis Budget's $1.9 billion corporate credit facility to 3 from 4, indicating meaningful (50%-70%) recovery of principal in a default scenario.

"The rating revision primarily reflects improved liquidity after a series of liquidity-raising initiatives the company pursued over the last several months (totaling $1.5 billion), an improvement in operating performance, and an improving used car market," said S&P credit analyst Lisa Jenkins in a news release.

"In addition, the June-July 2009 bankruptcies of General Motors and Chrysler, an area of previous concern, have minimally affected Avis Budget and other car renters."

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