Moody’s ups United Rentals to positive

Moody's Investors Service said it affirmed all ratings of United Rentals (North America), Inc. and changed the outlook to positive from stable.

The ratings affirmed were the corporate family rating at Ba3 and probability of default rating at Ba3-PD, second-lien senior secured notes at Ba1 and unsecured debt at B1.

In a related action the agency affirmed United Rentals’ speculative grade liquidity rating at SGL-2.

While the positive outlook reflects the expected benefits from the integration of the acquisition, Moody’s said it more significantly reflects prudent balance sheet management as evidenced by the decision to curtail its share repurchase program while integrating the acquisition.

The change in outlook also reflects the view that United Rentals has been strongly positioned in the Ba3 rating category and that a number of factors provide positive traction including its market position, strong margins, good liquidity and its significant geographic and product diversity in the North American market, the agency added.

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