2009-11-19 17:56:02 -

Fitch Ratings has assigned a 'B+' rating to United Rentals (North America), Inc.'s (URNA) 9.25% senior unsecured notes maturing in 2019.

Proceeds from the new notes are expected to be used to repurchase or repay senior debt, repay borrowings under the ABL facility and for general corporate purposes.

In addition, Fitch has also assigned Recovery Ratings (RR) to the company's senior unsecured and subordinated debt. The RR on the senior unsecured debt is 'RR1' based on the strong collateral coverage for these instruments. 'RR1' implies recovery between 90%-100%. The RR on subordinated debt is 'RR3', which implies a recovery between 51%-70%.

Fitch views the company's ability to access the capital markets to raise $500 million of senior unsecured debt positively, provided the

proceeds are used to repay or repurchase existing senior debt. In addition, the parent company, United Rentals Inc. (URI), has concurrently issued $172.5 million of 4% convertible senior notes due 2015, proceeds from which are expected to redeem a portion of the 14% senior notes due 2014.

Due to continued decline in demand for rental equipment in construction and industrial activity, URNA's financial profile remains weak as operating performance and EBITDA remain pressured. The company has continued to reduce the overall scale of operations and size of the rental equipment portfolio to maintain positive free cash flow. Cost cutting measures have included fleet transfers, as well as a reduction in branch network and employee headcount. In Fitch's view, the company has limited amount of additional flexibility to further reduce near-term equipment-related expenses should EBITDA decline further. However, Fitch does not anticipate any near-term liquidity pressure to arise as debt amortization payments are minimal and the bulk of URNA's debt maturities extend beyond 2011.

Fitch currently rates URNA and URI as follows.

United Rentals, Inc (URI)--Long-term Issuer Default Rating (IDR) 'B'

United Rentals (North America), Inc. (URNA)--Long-term IDR 'B+';--Senior secured credit facility 'BB-';--Senior unsecured debt 'B+/RR1';--Subordinated debt 'B/RR3'

The Rating Outlook is Negative. The ratings cover approximately $2.9 billion in debt.

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Fitch RatingsSadia Afridi, +1-212-908-0327 (New York)William
Artz, +1-312-368-3178 (Chicago)Media Relations:Brian
Bertsch, +1-212-908-0549 (New York) brian.bertsch@fitchratings.com : mailto:brian.bertsch@fitchratings.com