Standard & Poor’s Ratings Services last week assigned its BB+ secured bank loan rating to United Rentals’ proposed $1 billion senior secured asset-based loan credit facility due 2013.
S&P also assigned a recovery rating of “1”, indicating an expectation for very high recovery in the event of a payment default. United Rentals will use the facility to repay outstanding debt under the existing credit facility due to mature in February 2009.
The ratings agency affirmed all its ratings on United Rentals, including the BB- corporate credit ratings. The outlook is stable. S&P said the stable outlook reflects its expectation that the company will sustain its operating performance and maintain financial and acquisition discipline amid flattening or declining industry conditions.
Based in Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.