DBRS Places Dollar Thrifty Automotive Group, Inc. Under Review Positive, Issuer at B (high)

DBRS has today placed the ratings of Dollar Thrifty Automotive Group, Inc. (DTAG or the Company), including its Issuer Rating of B (high), Under Review with Positive Implications. This ratings action follows the announcement that the Company has reached a definitive agreement to be acquired by the higher-rated Hertz Corporation (Hertz). DBRS rates Hertz BB, at the issuer level.

The Under Review with Positive Implications reflects the change in ownership should the transaction proceed as proposed. Under the terms of the agreement, at closing DTAG will be become a wholly-owned subsidiary of Hertz. Additionally, Hertz will assume, or refinance DTAG’s fleet debt and, prior to the closing, DTAG’s corporate loan will be repaid. The proposed transaction is also subject to customary closing conditions, DTAG’s shareholder approval, and regulatory approvals.

DTAG’s current ratings reflect the Company’s strengthening balance sheet metrics, the acceptable financial performance, and the overall stable franchise. The ratings also consider the Company’s reliance on secured sources of funding and limited diversification of revenues.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Finance Companies Operating in the United States, which can be found on our website under methodologies.

This is a Corporate (Financial Institutions) rating.