Fitch Ratings has assigned
The final rating is in line with the expected rating assigned to the notes on
Key Rating Drivers
The new notes are fully and unconditionally guaranteed by
Fitch expects the proceeds of the new notes to initially be used to repay equivalent amounts drawn under the ABL facility. Consequently, we do not expect the transaction to materially impact
For more details on
Rating Sensitivities
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The notes' rating is primarily sensitive to a downgrade of
Gross debt/EBITDA approaching 2.5x without a clear route to near-term reduction, or without material cash simultaneously being held
Significant shortening of
Evidence of unexpected liquidity pressure, e.g. from heavy investment in new fleet without then generating the revenue anticipated from it
The notes' rating is also sensitive to a weakening in Fitch's view of their recovery prospects, for example, due to a material increase in the relative size of
Factors that could, individually or collectively, lead to positive rating action/upgrade:
The notes' rating could be upgraded if
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
Entity / Debt
Rating
Prior
senior unsecured
LT
BBB
New Rating
BBB(EXP)
Page
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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