Moody's maintains Avis Budget

Moody's Investors Service said it is maintaining its current B2 corporate family rating and positive outlook for Avis Budget Group, Inc., following the company's announcement that it has submitted a $1.3 billion offer to acquire Dollar Thrifty Automotive Group, Inc.

The maintenance of Avis' current ratings and outlook recognizes that the offer is not definitive and has not been accepted by Dollar, the agency said.

Under current terms of the existing agreement, Hertz Corp. would acquire Dollar for $1.1 billion and has the right to counter the Avis' offer, the agency noted.

Should the Avis purchase of Dollar be consummated, Avis' positive outlook might not be sustained as a result of an increase in acquisition related debt, Moody's stated.

However, if the transaction does not proceed, Avis' improving operating performance and more favorable industry fundamentals would continue to support a positive outlook, the agency said.

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