DBRS Morningstar Releases Commentary Addressing Hertz’s Interim Agreement with ABS Investors

DBRS, Inc. (DBRS Morningstar) released a commentary titled “Hertz’s Interim Agreement with ABS Investors Provides Roadmap for Second Half of 2020.” The Interim Agreement discussed in the commentary provides guidance on what can be expected with respect to the timing and amounts that will be paid by The Hertz Corporation (Hertz) to the investors of the Series 2013-A variable funding notes (VFNs) and the medium-term notes (MTNs) through December 2020. However, the actual outcome will be largely determined by Hertz’s ability to carry out the terms of the Interim Agreement.

The continuing economic stress related to the Coronavirus Disease (COVID-19) pandemic poses significant challenges for the rental car industry. The ability of Hertz to execute the terms of the Interim Agreement as well as the duration and severity of the coronavirus pandemic cannot be assessed with a high degree of certainty. DBRS Morningstar will monitor Hertz’s progress in executing the terms of the agreement to determine the impact of these actions on DBRS Morningstar’s current ratings.

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The commentary is available at www.dbrsmorningstar.com.

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