S&P lowers United Rentals

S&P said it lowered the rating on United Rentals Inc.'s subsidiary United Rentals (North America) Inc.'s senior unsecured notes to BB- from BB and revised the recovery rating on the debt to 5 from 4.

The 5 recovery rating indicates 10% to 30% expected default recovery.

S&P said it affirmed the BBB- rating on the company's senior secured debt, consisting of a $1 billion senior secured first-lien term loan due 2025 and $1 billion of senior secured notes due 2023.

The 1 recovery rating is unchanged, indicating 90% to 100% expected default recovery.

S&P said it lowered the rating on the unsecured debt to reflect the increased amount of priority debt in the company's capital structure following the recent upsizing of its asset-based lending facility to $3.75 billion from $3 billion.

The company also extended the maturity of the ABL facility to 2024 from 2021.

S&P said it expects United Rentals to use the increased ABL capacity for general corporate purposes.

The BB issuer credit ratings and stable outlooks on both United Rentals and United Rentals (North America) are unchanged.

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