Fitch Upgrades Avis Budget Group's Ratings

Fitch Ratings announced it has upgraded the long-term financial risk rating for Avis Budget Group (ABG), as well as for subsidiary Avis Budget Car Rental, from B+ to BB-

In explaining the upgrade, Fitch cited Avis Budget Group’s strength in its dual-brand strategy, leading position in the on-airport rental market, and record operating results in 2012.

Fitch also revised the rating outlook from “positive” to “stable.”

The revised ratings followed a review of the company’s auto rental and fleet leasing businesses.

“Fitch believes ABG currently has a more flexible business model than before the last downturn due to its improvements in revenue and supplier diversity, operating leverage, liquidity and funding,” Fitch Ratings said in a press release.

Fitch said that Avis Budget Group remains susceptible to pricing pressures and passenger volumes in air travel, but is now better equipped to manage cyclical downturns and maintain positive earnings – as long as there are no extreme, costly disruptions in vehicle prices and suppliers.

 

Comments

  1. Dante Terzo [ May 2, 2013 @ 10:10AM ]

    I LIKED THE STORY! IT WAS FUN TO READ.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.