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���������ֳ� - London - 11 Aug 2022: ���������ֳ� has assigned Ashtead Capital, Inc.'s USD750 million 5.5% senior notes due 2032 (US04505AAA79) a final rating of 'BBB'.

The final rating is in line with the expected rating assigned to the notes on 4 August 2022 (see '���������ֳ� Rates Ashtead's Senior Notes 'BBB(EXP)'', at ).

Key Rating Drivers

The new notes are fully and unconditionally guaranteed by Ashtead Group plc (Ashtead, BBB/Stable), and the rating is in line with Ashtead's 'BBB' Long-Term Issuer Default Rating (IDR), reflecting ���������ֳ�'s expectation of average recovery prospects. As unsecured obligations, the notes rank behind Ashtead's asset-based senior secured revolving credit facility (ABL facility) presently totaling USD4.5 billion, which is secured by a substantial majority of Ashtead's assets.

���������ֳ� expects the proceeds of the new notes to be used primarily to repay equivalent amounts drawn under the ABL facility. The transaction therefore does not materially impact Ashtead's leverage.

Ashtead's Long-Term IDR reflects the company's well-established franchise in the equipment rental sector, which has supported consistently strong earnings over the last decade. The rating also considers the need to manage a substantial capex programme across periods of potentially fluctuating customer demand, balancing the retention of a good-condition fleet with servicing and refinancing the debt funding that supports it (for more details of Ashtead's key rating drivers, see "���������ֳ� Upgrades Ashtead to 'BBB'; Outlook Stable" dated 7 April 2022 on ).

Rating Sensitivities

Factors that could, individually or collectively, lead to negative rating action/downgrade:

The notes' ratings are primarily sensitive to a downgrade of Ashtead's Long-Term IDR, which in turn is subject to:

- Gross debt/EBITDA approaching 2.5x without a clear route to near-term reduction, or without material cash being held simultaneously

- Significant shortening of Ashtead's presently lengthy debt maturity profile

- Evidence of unexpected liquidity pressure, eg. from heavy investment in new fleet without then generating the revenue anticipated from it

-The notes' ratings are also sensitive to ���������ֳ�'s view of a weakening of recovery prospects, for example due to a material increase in the relative size of Ashtead's ABL facility, which could lead ���������ֳ� to notch the notes' rating down from the Long-Term IDR

Factors that could, individually or collectively, lead to positive rating action/upgrade:

The notes' ratings could be upgraded if Ashtead's Long-Term IDR is upgraded. However, an IDR upgrade is unlikely in the near term unless Ashtead sees an upward reappraisal of the through-the- cycle business stability within the equipment rental sector, in addition to maintaining EBITDA growth without raising leverage from its present unusually low level

Best/Worst Case Rating Scenario

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit /site/re/10111579

Date of Relevant Committee

06 April 2022

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on ���������ֳ�'s ESG Relevance Scores, visit

Additional information is available on

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