NEW YORK (AP) — Standard & Poor's raised ratings on Dollar Thrifty Automotive Group Inc. on Wednesday, saying that the car rental company has improved its operating and financial performance.
S&P raised long-term ratings and the corporate credit rating to "B-minus" from "CCC," and the $231 million corporate credit facility to "B-minus" from "CCC-minus." Those are still in non-investment or junk-bond territory. S&P said the long-term ratings outlook is stable.
The company operates the Dollar and Thrifty car-rental brands.
S&P said the upgrade was based on improved performance that began in midyear due to higher prices on leisure rentals, which account for about two-thirds of company revenue, along with cost cutting. It said Dollar Thrifty was also helped by debt reduction and a $120 million stock offering this month.
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S&P analyst Betsy Snyder said the agency doesn't expect to raise ratings again until there is sustained improvement in rental demand, and it could lower ratings if competition increases or used car prices drop sharply.
Dollar Thrifty shares rose 71 cents, or 3.6 percent, to close at $20.51.