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

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.