Moody's rates Hertz B3, loans B2

Moody's Investors Service said it assigned the Hertz Corp. a B3 corporate family rating and gave B2 ratings to its $1.3 billion senior secured term loan B, $245 million senior secured term loan C and $1.26 billion senior secured revolving credit facility and an SGL-3 speculative grade liquidity rating.

“The ratings are assigned in anticipation that Hertz's plan of reorganization will be confirmed and that the company will emerge from bankruptcy over the near term. The ratings will be withdrawn if the plan is not confirmed or if emergence does not occur,” Moody’s said in a press release.

The ratings indicate the operating efficiencies and cost reductions achieved while in bankruptcy, a capital structure and liquidity profile that will enable it to fund its rental fleet through the fleet-expansion and fleet-reduction cycle characteristic of the car rental industry and the outlook for healthy demand, pricing and used vehicle prices into 2022, the agency explained.

The outlook is stable.

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