Dollar Thrifty Faces Its Second Ratings Drop

Standard & Poor's Ratings Services on Dec. 29 lowered the long-term corporate credit rating of Tulsa, Okla. rental car company Dollar Thrifty Automotive Group Inc. to "CCC+" from "B-", its second ratings drop of the company in two months.

Standard & Poor's said Dollar Thrifty, which employs about 700 people in Tulsa and 7,000 worldwide, remains on Creditwatch with negative implications, on which S&P placed the company on Feb. 12.

The Tulsa company has been hit by the downturn in corporate and leisure travel, surplus capacity in the rental car industry that has led to weak pricing and lower resale value of its used cars.

In the third quarter, Dollar Thrifty had earnings of $18.9 million, a 67 percent increase over 2007 third-quarter earnings of $11.3 million. Revenue in the third quarter was $500.6 million, a 4 percent decline from the same quarter last year.

Due to the uncertainty of the economy, the domestic automotive and airline industries and the used vehicle and financial markets, Dollar Thrifty executives said they expect to report a fourth-quarter pre-tax loss significantly greater than the $30.58 million fourth-quarter loss in 2007. The company also expects to post a 2008 pre-tax loss, company executives said.

In order to cut costs and realign its work force in a declining economy, Dollar Thrifty laid off 400 people in October.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

What a Connected Fleet Means to Avis (and Car Rental)

Counter bypass is just the beginning. The promise of a “data-driven ecosystem” that connects renters with the rental agency, retail services, and even the city is a better managed fleet, an improved user experience, and new revenue opportunities during the rental itself.

Job Finder: Access Top Talent. Fill Key Positions.