S&P Global Ratings has upgraded United Rentals Inc to investment-grade status, raising its issuer credit rating to BBB- from BB+, citing disciplined financial policy, sustained cash flow generation and reduced leverage. The agency also lifted the issue-level rating on the company's unsecured debt to BBB- while affirming its BBB- rating on senior debt, with a stable outlook reflecting expectations for steady operating metrics through market cycles. The upgrade rests on United Rentals' ability to keep leverage in the low-2x area while funding strategic growth and share repurchases, with scale and an expanding specialty equipment footprint providing a buffer against cyclical downturns in nonresidential construction. S&P expects annual free operating cash flow, which has exceeded 1.5 billion dollars over the past five years, to support revenue growth of 8% to 10% annually through 2027 on demand from U.S. mega-projects and data center construction. Adjusted EBITDA margins are forecast to hold at 46% to 48%, and S&P said the company can scale back capital expenditures during market drawdowns to keep debt-to-EBITDA below its 3x target threshold over the long term.
United Rentals IncS&P upgraded United Rentals to investment grade BBB- on disciplined financial policy, reduced leverage and strong cash flow.
S&P Global Inc