Europcar: share rises as S&P upgrades rating

(CercleFinance.com) - S&P Global Ratings raised its long-term rating on Europcar Mobility Group on Friday evening, although still has a "negative" outlook for the group.


In a statement issued after trading, S&P said that it has upgraded the car rental group's issuer rating the specialist to "CCC+" from "SD" (selective default) previously.

The agency justifies its upgrade by the financial restructuring carried out by the group, which has enabled it to reduce its debt and improve its cash flow.

On the Paris stock exchange, Europcar's shares recovered by around 0.6% on Monday morning after this press release, even though the share price has still fallen a whopping 63% since the start of the year.

S&P also said it expects heavy cash burn this year due to the impact of the Covid-19 epidemic on demand for car rentals.

The rating agency attributes its "negative" outlook to the possibility of a default risk over the next six to 12 months, including a recovery that may be slower than expected or a deterioration in the group's cash position.


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