Moody's ups Hertz, assigns notes Caa1

Moody's Investors Service said it upgraded the ratings of the Hertz Corp., including the corporate family rating to B2 from B3, the probability of default rating to B2-PDR from B3-PDR and the senior secured rating to Ba3 from B2. The agency also assigned a Caa1 to the new senior unsecured notes Hertz plans to sell to fund the repurchase of preferred stock issued by Hertz Global Holdings, Inc., which indirectly owns the Hertz Corp. The speculative grade liquidity rating is unchanged at sgl-3.

“The ratings upgrade reflects Moody's view that Hertz is emerging from bankruptcy proceedings stronger than previously anticipated, with earnings boosted in the near-term by an industry fleet size that lags the recovery in rental demand,” the agency said in a press release.

The outlook remains stable.

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