Standard & Poor's raised its ratings outlook on Hertz Global Holdings Inc. to positive from negative this week, citing reduced concerns about refinancing risk. Last week Hertz announced the refinancing of $1.2 billion in debt.
"We are likely to raise the ratings on Hertz within the year if the company successfully addresses its remaining 2010 debt maturities, or if its profitability improves such that the adjusted operating margin approaches the 10 percent area," said credit analyst Lisa Jenkins in a statement.
"Although considered less likely, we could revise the outlook to negative or lower the ratings if the company cannot refinance its 2010 remaining maturities and the expected improvement in profitability does not occur," Jenkins said.
S&P affirmed Hertz Corp. at ‘B’ corporate credit rating.
Hertz still has $1.5 billion of non-U.S. debt to refinance over the next year, S&P reports.