Moody's rates United Rentals notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the $750 million senior secured notes and B3 to the two tranche unsecured notes totaling $2.075 billion to be issued by United Rentals, Inc. through its subsidiary UR Financing Escrow Corp. for the acquisition of RSC Holdings Inc.

The corporate family and probability of default ratings at its primary operating subsidiary United Rentals (North America), Inc. were affirmed at B2 with a stable outlook.

The ratings reflects the company's moderate leverage for its rating, large scale relative to its competitors and the expectation for strengthening operating margins, Moody's said.

These attributes are balanced against the ongoing cyclicality of the non-residential construction sector, meaningful uncertainty in the commercial market and negative cash flows when fleet equipment is added in response to increased demand, the agency said.

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