Moody's ups United Rentals, rates notes Caa1

Moody's Investors Service said it upgraded United Rentals, Inc.'s probability of default rating, corporate family rating and senior unsecured regular bond ratings to B2 from B3.

Moody's said it also assigned the proposed new $500 million senior subordinated notes Caa1 ratings to reflect its junior position in the capital structure.

The ratings outlook is stable.

Proceeds of the new senior sub notes will be used to redeem the company's 7.75% senior subordinates notes due 2014 and other capital structure adjustments, as well as for general corporate purposes, Moody's noted.

The corporate family rating upgrade reflects the company's success in managing its fleet inventory and the belief that the company will be cautious in its purchases in order to maximize its utilization rates and return on assets, the agency added.

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