Moody’s downgrades Hertz

Moody's Investors Service said it downgraded Hertz Corp.’s probability of default rating to D-PD from Caa3-PD following the company's announcement that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.

Moody's concurrently downgraded the corporate family rating to Ca from Caa3, first-lien credit facility to Caa1 from B3, second-lien debt to Caa3 from Caa2 and senior unsecured domestic notes to C from Ca.

The senior unsecured notes of Hertz Holdings Netherlands BV guaranteed by Hertz was affirmed at Ca.

The speculative grade liquidity rating of Hertz is unchanged at SGL-4.

The outlook for all entities was changed to no outlook from negative.

Moody's will withdraw all of its ratings for Hertz given the company's bankruptcy filing.

The agency said the downgrades reflect the unprecedented decline in air travel and rental car usage that have resulted from the coronavirus pandemic and weakened used car market, the resulting Chapter 11 filing by Hertz's U.S. operations and, in Moody's view, the elevated probability of liquidation.

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