Moody's rates Hertz notes B2

Moody's Investors Service said it assigned a B2 rating to the Hertz Corp.'s $250 million of senior unsecured notes.

The proceeds from the issuance, along with about $225 million of cash, will fund a share repurchase of about $475 million by Hertz's parent company, Hertz Global Holdings, Inc.

The transaction will not materially weaken Hertz's financial metrics and liquidity profile, Moody's said.

Hertz's B1 corporate family rating, as well as the Ba1 rating of its first-lien term loan, B2 rating of its existing senior unsecured debt and SGL-3 speculative-grade liquidity rating were affirmed.

The outlook remains stable.

Key restraints to the ratings include the company's need to reduce its high level of corporate debt and bolster its liquidity position, the agency said.

Although relatively modest, the $475 million share repurchase will increase Hertz's corporate debt and narrow its cash liquidity position, Moody's said.

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