S&P assigns United Rentals notes BB

S&P said it assigned a BB rating to United Rentals (North America) Inc.'s planned $750 million of senior unsecured notes due in 2032. The recovery rating is 5, indicating an expectation for modest (10%-30%; rounded estimate: 25%) recovery in default.

URNA is a subsidiary of United Rentals Inc. (URI), which with URNA's domestic subsidiaries, subject to limited exceptions, guarantees the notes.

The BB+ issuer credit ratings and stable outlooks on both URI and URNA are unchanged, S&P said.

The company plans to use the proceeds, in addition to borrowings under its asset-based revolving credit facility, to redeem its $1 billion of 5 7/8% senior unsecured notes due in 2026. “The transaction does not have any material impact on our leverage estimates,” the agency said in a press release.

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