S&P Raises Enterprise Holdings Inc. Long-Term Rating to ‘BBB+’ On Improved Financial Profile
Action reflects ‘continued strong cash flow’ of ‘world’s largest car rental company’
Feb. 23, 2010 (St. Louis) - Standard & Poor's Ratings Services has raised its long-term ratings on Enterprise Holdings Inc to 'BBB+' from 'BBB' based on the company's improved financial profile. S&P said the rating action "reflects Enterprise's improved financial profile, with stronger credit ratios due to continued strong cash flow ... and substantial debt reduction." Enterprise Holdings remains the only car rental company with an investment grade rating.
S&P noted that Enterprise Holdings, operating through its subsidiaries, the Enterprise Rent-A-Car, Alamo Rent A Car, and National Car Rental brands, is "the world's largest car rental company, with over $12 billion of revenues in fiscal 2009," and "operates the largest global fleet of passenger vehicles and trucks." The rating agency also cited the positive impact of the National and Alamo brands, which helped to grow their "on-airport market share to its current approximate 33% from a previous 8%." Enterprise Holdings is now the largest airport car rental company, compared with major competitors.
Looking ahead, S&P said it expects improving demand to enable Enterprise Holdings "to continue to generate strong cash flow." In addition, S&P said it expects "internally generated cash, proceeds from vehicle sales, and the company's credit facilities will be sufficient to meet near- to intermediate-term capital spending plans and debt maturities."
About Enterprise Holdings
Enterprise Holdings, Inc. through its regional subsidiaries, owns and operates more than 1 million cars and trucks, the largest fleet of passenger vehicles in the world today, under the Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental brands. As North America's largest and most comprehensive car rental company, Enterprise Holdings also operates a network of more than 7,600 car rental locations in neighborhoods and at airports worldwide, and leads the industry with more than a third of all airport business in the U.S. and Canada.
Enterprise Holdings is headquartered in St. Louis. Ranked No. 21 on the Forbes Top 500 Private Companies in America list, Enterprise Holdings is unparalleled in size, strength and stability - the only investment-grade company in the car rental industry. In addition, Enterprise Holdings is part of a global strategic alliance with Europcar, creating the world's largest car rental network. Other Enterprise business lines include Enterprise Fleet Management, Enterprise Commercial Trucks, Enterprise Car Sales and WeCar car sharing. For more information about Enterprise Holdings, visit http://www.enterpriseholdings.com. For more information about Enterprise Holdings' environmental stewardship and the company's long-term commitment to ensure the sustainability of its business, visit www.keystogreen.com.