S&P: United Rentals still on watch

Standard & Poor's said that its ratings on United Rentals (North America) Inc. remain on CreditWatch with negative implications, including its BB corporate credit rating, BB senior secured bank loan rating, BB- senior unsecured rating and B+ senior subordinated debt rating.

The ratings remain on CreditWatch because of the company's ongoing delay reporting its 2004 audited results and filing its form 10-K amid an investigation by the Securities and Exchange Commission. United Rentals has not given any specific reason for the investigation, though the original notice was accompanied by a subpoena for certain company accounting records.

S&P said the filing delay has required the company to obtain an extension on a waiver from the senior lenders under its credit facility. The banks have extended the waiver to Dec. 31, 2005. United Rentals' bond indentures also require the timely filing of reports, and continued delay in filing could lead to an event of default if the company receives a notice from the trustees or from 25% of the bondholders.

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