Moody's lowers Dollar Thrifty

Moody's Investors Service said it lowered Dollar Thrifty Automotive Group, Inc.'s corporate family rating to Caa3 from B3 and probability of default rating to Caa2 from B3.

The outlook is negative and the speculative-grade liquidity rating remains SGL-4, the agency said.

Moody's noted that the downgrade reflects the severe downturn in the on-airport car rental sector, and the very challenged financial and operating position of Dollar's principal vehicle supplier, Chrysler Automotive LLC.

Dollar sources over 80% of its vehicles from Chrysler, the agency added, noting that although the company does have the flexibility to shift its purchases to other suppliers, the pace and operations ease of undertaking any material shift in supply source remains highly uncertain.

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