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

DBRS, Inc. (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. 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 sound business franchise, improved financial performance, and strengthened financial risk profile. Moreover, the ratings consider the favorable industry fundamentals and DBRS’s expectation that industry fundamentals will remain positive through the remainder of 2012 and into 2013. The ratings also consider the Company’s reliance on secured sources of funding and limited diversification of revenues.

Notes:
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.

The sources of information used for this rating include company documents. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst: David Laterza
Rating Committee Chair: Alan G. Reid
Initial Rating Date: April 22, 2010
Most Recent Rating Update: April 5, 2012