Moody's: United Rental outlook developing

Moody's Investors Service said it changed United Rental (North America) Inc.'s outlook to developing from negative and affirmed the B2 corporate family and senior secured debt ratings, B3 senior unsecured debt rating, Caa1 senior subordinated debt rating, Caa2 Quarterly Income Preferred Securities (QUIPS) rating and SGL-3 speculative grade liquidity rating.

The developing outlook reflects Moody's expectation that with strong non-residential construction end markets, United Rental should achieve improved credit metrics through 2006 that could support a higher rating level. The outlook also acknowledges the progress in resolving accounting irregularities evident in the company's recent filing of its 2005 10-K report.

However, the company has not yet brought all quarterly financial reporting requirements current, and absent the filing of quarterly financial statements, Moody's said the company could still face pressures from its lenders. Moreover, the company continues to face various SEC investigations and shareholder suits related to accounting irregularities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.