Fitch update on European rental prospects

By Murray Pollok31 May 2023

Ratings agency Fitch said it expects the European equipment rental businesses that it covers to maintain their credit profiles and remain resilient in the face of reduced economic and construction activity in Europe.

The agency, which provides financial ratings for Boels Group, Renta Group, Modulaire and Ashtead Group, said the businesses were underpinned by adequate EBITDA margins, good diversification, and acceptable (although reduced) potential for reducing debt.

Modulaire owns the Algeco portable accommodation rental business.

The new report follows a review of the four companies, with ratings for Ashtead Group (BBB/Stable), Boels (BB-/Positive), Renta (B+/Stable), and Modulaire (B/Stable).

Under Fitches’ system, BBB indicates that expectations of default risk are low; BB means vulnerability to default risk, but with flexibility to support financial commitments; while B indicates a risk of default and vulnerability to a deterioration in the business. 

Fitch revised the outlook on Boels’ long-term issuer rating to Positive from Stable, “reflecting its consistent EBITDA generation over the past three years while addressing both the pandemic and the integration of Cramo. This has enabled meaningful deleveraging, and, if sustained, could lead to an upgrade.”

The ratings agency said reduced economic and construction activity in Europe and potential recession in some countries could impact demand for equipment, but large-scale infrastructure spending in western Europe may reduce the near-term impact.

Fitch added that rental companies are often exposed to rising interest costs, “which could pressure profitability alongside the inflation impact on other expenses.”

Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Cummins highlights hydrogen at DP Summit, Utility Expo
Company will discuss H2 technology at the conference and display it in its booth at the expo
Equipment Depot makes changes as it targets $1 billion in revenue by 2025
Material handling rental leader points to its ‘2025 Vision Strategy’ as it gears up to meet corporate goals
Rental Briefing: daily newsletter for rental sector being launched by KHL
Newsletter will provide analysis, comment and insight into the global industry
Ollie Hodges Publisher Tel: +44 (0)1892 786253 E-mail:
Lewis Tyler
Lewis Tyler Editor Tel: 44 (0)1892 786285 E-mail: