Hertz notes trader higher despite ratings downgrade; L Brands gains on market optimism

By James McCandless

San Antonio, April 28 – The Tuesday distressed session saw the market’s attentions remain fixed on retail and energy names.

Hertz Global Holdings, Inc.’s notes were positive despite receiving a ratings downgrade as the overall market carried the name higher.

The 6¼% senior notes due 2022 picked up 3½ points to close at 32 bid. The 5½% senior notes due 2024 added 1½ points to close at 25½ bid.

During the Tuesday session, S&P Global Ratings issued a blanket downgrade to its ratings for the Estero, Fla.-based vehicle rental company and Hertz Corp. to CCC- from B-.

The agency said that the move is based on the increased likelihood that the company will complete a distressed exchange or a partial debt restructuring.

The company’s debt structure was carried higher, however, on market optimism of a post-coronavirus economy as states weigh lifting stay-at-home mandates.

Meanwhile, retailer L Brands, Inc.’s issues were seen gaining on the same sentiment as the market expressed optimism about a post-coronavirus economy.

The 6¾% senior notes due 2036 rose 1½ points to close at 71½ bid. The 5¼% senior notes due 2028 jumped up 4¼ points to close at 70¼ bid.

The Columbus, Ohio-based retail name’s issues were also carried higher on overarching positivity despite a ratings downgrade.

© 2015 Prospect News.
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