Moody’s Upgrades Enterprise Holdings Long-Term Rating
Higher rating reflects financial discipline, strength of company’s three-brand portfolio and continuing industry improvement
ST. LOUIS (Dec. 17, 2010) – Moody's Investors Service has raised the long-term rating of Enterprise Holdings to Baa1 from Baa2. In its news release, Moody’s noted that the new rating “reflects the continuing improvement in the operating environment within the domestic car rental sector, as well as the financial and competitive advantage that Enterprise maintains relative to other rental companies.”
In addition to recognizing Enterprise Holdings’ “formidable competitive and operating strengths,” Moody’s cited “a highly prudent and disciplined financial strategy. The ownership and management of Enterprise have consistently demonstrated a commitment to maintaining a strong balance sheet and ample liquidity.” As a result of that discipline, Moody’s continued, the company’s “credit metrics are now stronger than at any point in the past decade.”
Commenting on the upgrade, Enterprise Holdings Chairman and Chief Executive Officer Andrew C. Taylor said, “Coming out of the difficult economic conditions of the past several years, we delivered strong results in our 2010 fiscal year. Our disciplined management, consistently high standard of customer service and sharp focus on costs are all reflected in our status as the only investment grade company in the rental car industry. Thanks to these factors, we are well-positioned to take advantage of the improved demand we’re seeing throughout our business.”
Among its competitive advantages, Moody’s noted that Enterprise Holdings “is the strongest player in the off-airport market and holds the leading share position in the on-airport market. Moreover, its competitive position within the on-airport sector has strengthened with the successful integration of the National/Alamo brands following the 2007 acquisition.”
“The upgrade in our Moody’s rating is further evidence of the power of our three-brand portfolio, our commitment to operational excellence and our heritage of more than 50 years of unsurpassed customer service,” Taylor said. “And it is a tribute to the people of Enterprise, National and Alamo who work hard every day to deliver a positive rental experience for every one of our customers.”
About Enterprise Holdings
Founded in 1957, Enterprise Holdingsis the most comprehensive service provider and only investment-grade company in the car rental industry, operating Alamo Rent A Carand National Car Rental,as well as its flagship Enterprise Rent-A-Carbrand. Its worldwide network includes 7,600 neighborhood and airport locations, with 6,000offices located within 15 miles of 90 percent of the U.S. population. The Alamo, Enterprise and National brands collectively lead the car rental industry with more than one-third of all airport business in the United States and Canada. Further, Enterprise has ranked highest in customer satisfaction among North American airport rentals in 11 of the past 12 years, according to J.D. Power and Associates Rental Car Satisfaction Study.
With annual revenues of $12.6 billion and more than 68,000 employees, Enterprise Holdings also owns and operates, through its regional subsidiaries, more than 1 million cars and trucks, making it the largest car rental company in the world measured by revenue, employees and fleet. Ranked No. 17 on the Forbes “Top 500 Private Companies in America” list, Enterprise Holdings is owned by the Taylor family and headquartered in St. Louis. Enterprise Holdings offers business and retail customers a total transportation solution, which includes hourly rental, car leasing, WeCarcar sharingandEnterprise Ridesharevanpooling programs, as well as the Enterprise Car Salesand Enterprise Commercial Trucksbusiness lines. In addition, Enterprise Holdings is part of a global strategic alliance with Europcar, creating the world’s largest car rental network. For more information about Enterprise Holdings, visit www.enterpriseholdings.com. For more information about Enterprise Holdings’ environmental stewardship and long-term commitment to the sustainability of its business, visit www.enterpriseholdings.com/sustainability. [This news release and other announcements are available at the Enterprise Holdings press room.]