S&P gives United Rentals notes B-

Standard & Poor's said it assigned its B issue-level rating to United Rentals (North America) Inc.'s proposed new $400 million of senior unsecured notes due 2019, the same as the corporate credit rating.

The recovery rating on this debt is 4.

S&P said it expects the company to use the proceeds from the new notes to retire outstanding senior unsecured indebtedness, pay down outstanding borrowings under its asset-backed revolving credit facility, and for general corporate purposes.

The issue-level ratings and recovery ratings for the company's existing debt remain unchanged, the agency noted.

"The ratings on United Rentals reflect its assessment of its fair business risk profile, based on the company's participation in the cyclical, highly competitive, and fragmented equipment rental sector, as well as its highly leveraged financial profile," said S&P credit analyst Helena Song.

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