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Credit FAQ: The State Of The U.S. Car Rental Industry Consolidation--One Year Later
Standard & Poors, May 2011
Abstract
The competition among U.S. rental car companies to be the market leader continues to heat up. On May 9, 2011, Hertz Global Holdings Inc. (B+/Watch Neg/--), parent of the Hertz and Advantage car rental brands, announced a new proposal to acquire competitor Dollar Thrifty Automotive Group Inc. (DTAG; B/Watch Pos/--), parent of the Dollar and Thrifty brands, for approximately $2.2 billion in cash and stock. The bid comes just over one year after Hertz signed a definitive agreement on April 26, 2010, to acquire DTAG. On Sept. 30, 2010, DTAG's shareholders voted against Hertz's proposal in favor of a higher bid by auto renter Avis Budget Group Inc. (B+/Stable/--; parent of the Avis and Budget brands), a deal that has...
Companies mentioned in this report are: Avis Budget Group Inc.,Dollar Thrifty Automotive Group Inc.,Hertz Global Holdings Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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