S&P ups HERC Holdings

S&P said it upgraded HERC Holdings Inc. and its senior unsecured notes to BB- from B+ and its senior secured debt rating to BB+ from BB.

HERC generated more than $450 million in free operating cash flow in 2020 by reducing its equipment rental expenditures by more than 50%. It used the free operating cash flow to lower its debt by about 20%, S&P noted.

“The upgrade reflects our expectation for the company to sustain its improved debt leverage, which we believe will be supported by the company's financial policies and commitment to maintaining a lower leverage target,” the agency said in a press release.

The outlook is stable.

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