Fitch assigns Mavis Tire Express Services first-time B- issuer rating

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Mavis Tire B- rating assigned

Highlights

Fitch assigns first-time B- Long-Term Issuer Default Rating to Mavis Tire Express Services, with $775 million secured term loan earmarked to redeem preferred equity.
Mavis's revenue projected to rise from $2.7 billion in 2022 to $4.6 billion in 2026, despite leverage in the high-6x EBITDAR range and negative free cash flow from rapid expansion.
With $478 million projected liquidity at end-2025 and defensive sector positioning, Mavis faces moderate headwinds from electric vehicles but maintains flexibility via sale-leasebacks and revolver usage.

Rating action and credit profile

As reported by Fitch Ratings, Mavis Tire Express Services TopCo, Corp. and Metis HoldCo, Inc., collectively Mavis, receive a first-time Long-Term Issuer Default Rating of B-. Fitch also assigns a B rating with a Recovery Rating of RR3 to the company's revolver and first-lien term loans, and a CCC rating with an RR6 recovery assessment to its senior unsecured notes.

The debt package includes a new $775 million secured term loan, with proceeds earmarked to redeem preferred equity. Fitch says the stable outlook reflects Mavis's position in the non-discretionary U.S. automotive maintenance market, offset by leverage in the high-6x EBITDAR range in 2026 and pressure on free cash flow from rapid store expansion.

Fitch points to Mavis's operating scale and long record of same-store sales growth as key rating supports. Revenue rises to $4.6 billion in 2026 from $2.7 billion in 2022, driven by acquisitions and organic growth, while fixed-charge coverage is expected to remain in the mid-to-high 1x range through 2029.

Expansion strategy and sector resilience

Mavis operates 3,619 locations across 49 states and holds about 3.4% of the U.S. market, according to Fitch. The ratings firm says the fragmented nature of the sector, where the top five players control less than 10% combined market share, gives large operators room to expand through scale, procurement advantages, marketing reach and data-driven site selection.

Liquidity stands at $478 million at the end of 2025, including $83 million of cash and $395 million of revolver availability. Fitch expects free cash flow to remain negative in the near to intermediate term after growth capital expenditure, with interest expense rising by about $50 million, but says Mavis retains flexibility through sale-leaseback transactions and revolver usage if needed.

Fitch also highlights defensive features in the business model. Preventative automotive maintenance remains non-discretionary across economic cycles, aging vehicles and rising repair complexity support demand, and while electric vehicles create some headwinds for oil changes, faster tire wear partly offsets that risk; oil changes account for about 12% of Mavis revenue.

Our earlier coverage of Fitch’s 'AA-' rating on Georgetown, Texas’ Series 2026 utility system revenue bonds outlined how the fast-growing city is financing expanded water and wastewater capacity while maintaining a Stable Outlook. The update emphasized strong cash flow, sizable unrestricted liquidity, and solid rate-setting flexibility, alongside expectations for gradual deleveraging after major capital projects.

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