Fitch rates Sunbelt Rentals BBBexp.af RMS Ashthad at BBB stable

Fitch rates Sunbelt Rentals BBBexp.af RMS Ashthad at BBB stable

Fitch Affirms Ashtead Group’s ‘BBB’ Rating with Stable Outlook Amid Strategic Liquidity Measures

Fitch Ratings has reaffirmed Ashtead Group plc’s long-term issuer default rating at ‘BBB’ with a stable outlook, reflecting the company’s resilience amid macroeconomic challenges and its proactive liquidity management. The rating, consistent with prior affirmations(https://www.fitchratings.com/research/non-bank-financial-institutions/fitch-affirms-ashtead-at-bbb-outlook-stable-13-03-2025), underscores Fitch’s confidence in Ashtead’s financial flexibility and operational adaptability.

Ashtead, parent company of Sunbelt Rentals, has taken significant steps to strengthen its balance sheet in response to pandemic-driven market disruptions. In March 2025, the company accessed an additional $500 million under its senior secured credit facility, expanding the facility to $4.6 billion for 12 months. This move followed a broader cost-optimization strategy, including reduced capital expenditures, suspended M&A activity, and a temporary halt to share buybacks. The company also implemented a hiring freeze and cut discretionary operating expenses, aligning with reduced demand in its core markets.

Despite challenges, Ashtead has maintained essential operations in the U.S., U.K., and Canada, where Sunbelt Rentals is designated an essential service provider. While general tool rental revenue declined in early 2026, specialty segments—such as healthcare and infrastructure support—offset some losses. The company reported stabilized fleet utilization rates in the U.S. and expects underlying profit before tax for the fiscal year ending April 30, 2026, to reach approximately £1.05 billion.

Fitch’s stable outlook aligns with Ashtead’s commitment to preserving liquidity and avoiding workforce reductions, even as it models for prolonged low-activity scenarios. The company’s cash flow-positive projections and diversified market exposure further support its credit profile.

This rating affirmation signals Fitch’s view that Ashtead’s strategic adjustments and robust balance sheet position it to navigate near-term uncertainties while maintaining long-term financial stability.

(https://www.fitchratings.com/research/non-bank-financial-institutions/fitch-affirms-ashtead-at-bbb-outlook-stable-13-03-2025): Fitch Ratings, March 13, 2025
(https://www.fitchratings.com/research/non-bank-financial-institutions/fitch-affirms-ashtead-at-bbb-outlook-stable-19-03-2024): Fitch Ratings, March 19, 2024
(https://www.fitchratings.com/research/non-bank-financial-institutions/fitch-affirms-ashtead-at-bbb-outlook-stable-13-03-2025): Fitch Ratings, March 13, 2025
(https://www.rermag.com/rental-news/article/21129862/sunbelt-rentals-parent-ashtead-accesses-additional-500-million-in-credit): RERmag, March 2025