S&P keeps Dollar Thrifty on positive watch

Standard & Poor's said its ratings on Dollar Thrifty Automotive Group Inc. remain on Creditwatch with positive implications.

This follows competitor Avis Budget Group Inc.'s (B+/stable) July 28 bid to acquire the company, the agency said, noting that it initially placed the ratings on Dollar Thrifty on Creditwatch with positive implications on April 26, when the company announced that it had signed a definitive agreement to be acquired by another competitor, Hertz Global Holdings Inc. (B/watch positive).

"In the proposed acquisition bids, Dollar Thrifty's corporate debt would be retired, and either Avis Budget or Hertz, both rated higher than Dollar Thrifty, would assume its $1.6 billion of fleet debt," said S&P credit analyst Betsy R. Snyder.

"We will evaluate the effect of the proposed acquisition by either Avis Budget or Hertz on Dollar Thrifty's business risk and financial risk profiles to resolve the Creditwatch listing," she continued.

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