Moody’s applies Ba1 to Hertz loans

Moody's Investors Service said it affirmed the Hertz Corp.’s B1 corporate family rating, B1-PD probability of default rating, Ba1 senior secured rating, B2 senior unsecured rating and SGL-3 speculative grade liquidity rating.

The outlook was changed to positive from stable.

Moody's concurrently assigned a Ba1 rating to the company's proposed $2.4 billion first-lien senior secured credit facility that will consist of: (a) A $1.7 billion revolving credit facility maturing in 2021; and (b) a $700 million term loan maturing in 2023.

Moody’s said these actions reflect its expectation that Hertz will complete the planned separation of its equipment rental operations (HERC), and that the company will benefit from initiatives being implemented by the newly installed senior management team. Hertz should also benefit from being one of only three key players in the oligopolistic North American car rental sector along with Enterprise Holdings and Avis Budget Group, Inc. the agency said.

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