S&P rates Hertz notes B-, ups second-lien notes

S&P said it assigned a B- issue-level rating and 6 recovery rating to Hertz Corp.’s proposed $750 million senior unsecured notes due 2028. Hertz Corp. is a subsidiary of Hertz Global Holdings Inc. The 6 recovery rating indicates S&P’s expectation that lenders would receive negligible (0%-10%; rounded estimate: 0%) recovery of their principal in the event of a payment default.

The company will use the proceeds from these notes to redeem a similar amount of its senior secured second-priority notes due 2022.

S&P also boosted the issue-level rating on Hertz’s second-lien notes to BB- from B+ and raised the recovery rating to 2 from 4, indicating the expectation that lenders would receive substantial (70%-90%; rounded estimate: 75%) recovery in the event of a payment default.

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