ERAC Canada Finance Ltd. & Enterprise Rent-A-Car Company

Jarmo Saari, CFA; Kent Wideman, CFA / 416-593-5577 ext.2257, ext.2235 / jsaari@dbrs.com

DBRS is confirming the above ratings of ERAC Canada Finance Limited and Enterprise Rent-A-Car Company, with continuing Stable trends. Despite the soft used car market, the parent company, Enterprise Rent-A-Car Company (“Enterprise”), which unconditionally guarantees the debt of ERAC Canada Finance Limited, continued to report favourable earnings for the fiscal year ended July 2002. Gains on the disposal of rental vehicles are smaller but still positive, reflecting the variety of techniques Enterprise uses to maximize the revenue on sales. Although others in the car rental (on-airport) industry have been significantly negatively impacted by the weak economy, Enterprise’s on-airport outlets, which have recently grown to over 100, still represent only a minor segment of total revenue. The core suburban businesses, including the international segment, are performing in accordance with expectations. Equity increased by 20% in fiscal 2002, leading to improved capital ratios but a lower ROE, although the latter remained strong. Enterprise continues to aggressively promote its brand and Internet strategies continue to develop. E-commerce initiatives are effective both in marketing and in improving the efficiency of back-office administrative processes.

Dominion Bond Rating Service Limited (DBRS) has published a full report that provides additional analytical detail.  To see this report, please click on http://www.dbrs.com/web/sentry?COMP=2900&DocId=117480.  If you do not have access to this document, please contact us at info@dbrs.com.