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

DBRS has today confirmed the ratings of Dollar Thrifty Automotive Group, Inc. (DTAG or the Company), including its Issuer Rating of B (high). Concurrently, DBRS assigned the ratings a Stable trend and removed the ratings from Under Review with Positive Implications, where they were placed on April 28, 2010.

This rating action follows the announcement that the Company’s shareholders have rejected the offer to be acquired by the Hertz Corporation (Hertz). Given this transaction is not expected to proceed, DTAG’s ratings will not benefit from the uplift of being acquired by a higher-rated entity, as such the trend is now Stable. While DBRS recognizes that there are other potential suitors for the Company, the outcome is less than certain. DBRS will continue to closely monitor the evolving situation regarding potential changes in ownership and will provide comments in due course, as details of any definitive agreement become available.

The current ratings reflect DTAG’s strengthening balance sheet metrics, its solid 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.