S&P lifts Enterprise Fleet view to positive

S&P said it revised the outlook on Enterprise Fleet Management Inc. to positive from stable and affirmed its BBB- long-term issuer credit rating.

The company has reduced its leverage to less than 3x with an expectation for sustained lower leverage levels and strong EBITDA margins, the agency said.

The ratings also consider the company's healthy market share in the fleet-leasing industry, S&P said.

Enterprise is the No. 2 fleet leasing company and has been operating in the industry for decades, the agency said.

Although the industrywide number of fleet vehicles leased has fallen slightly over the past few years, the company has been able to grow its business by focusing on underserved and smaller fleets, S&P said.

The fleet-leasing industry is relatively small and highly service-oriented, limiting the appetite and ability of opportunistic banks and finance companies to build the necessary infrastructure to enter the market, the agency added.

As a result, the market positions of the handful of competitors that dominate the industry have remained fairly steady for a number of years, S&P said.

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