Car rental stocks slide after Fitch warning (NYSE:HTZ)

Avis Budget (CAR -11.0%) and Hertz Global (HTZ -9.5%) are both sharply lower after $6B worth of Hertz ABS debt is placed on Ratings Watch Negative by Fitch Ratings.

“The RWN action is a result of the ongoing coronavirus impact on the travel sector and Hertz’s operating business and revenues, as well as the pandemic’s impact driving vehicle depreciation higher and values lower across their fleet in the past four to six weeks. Further, the ongoing dislocation, closures of and limited activity in the wholesale market across vehicle auctions nationwide is creating unique challenges for Hertz in defleeting, and generating disposition proceeds negatively impacting their monthly operating lease liabilities.”

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