Moody's cuts Hertz view to negative

Moody's Investors Service said it affirmed the debt ratings of The Hertz Corp.'s corporate family rating at Ba3 and changed the outlook to negative from stable.

The negative outlook recognizes a potentially more aggressive financial strategy that is reflected in the willingness of Hertz's owners to seek up to a $1 billion distribution only six months after completing the buyout of Hertz.

The debt issued by Hertz Holdings to fund any dividend would have to be serviced by the receipt of dividends from Hertz and could be a source of pressure on the operating subsidiary's financial position, Moody's said.

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