S&P downgrades Dollar Thrifty

Standard & Poor's said it lowered Dollar Thrifty Automotive Group Inc.'s corporate credit rating to B- from B and kept ratings on CreditWatch, where they were placed with negative implications on Feb. 12.

The agency lowered the $600 million credit facility to B- from BB- and revised the recovery rating to 3 from 1.

The downgrade is based on continuing weak earnings outlook due to pressure on pricing and vehicle depreciation costs, which began earlier in 2008, according to S&P.

Dollar Thrifty faces a decline in travel due to the weakening economy in addition to reduced access to capital and higher borrowing costs, and currently has a market capitalization of only $22 million, the agency noted.

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