Moody’s Investors Service last week said it has assigned corporate family rating B2 to United Rentals in conjunction with the $6.9 billion leveraged buyout acquisition of United by affiliates of Cerberus Capital Management LP. Moody’s said the deal will result in a relatively high debt burden for the Greenwich, Conn.-based rental giant.
Standard & Poor’s Ratings Services also said last week it plans to lower its corporate credit rating on United Rentals and assign a stable outlook following the company’s takeover. The acquisition of United is expected to close Nov. 16.
S&P assigned BB ratings to the company’s proposed $1.5 billion senior secured first-lien revolving credit facility, and $1.1 billion senior first-lien term loan facility. Analysts cited the cyclical nature of the rental market for the downgrade.
The outlook reflects S&P’s expectation that United will sustain its operating performance and financial and acquisition discipline.
