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Junk rating threat to Hertz

Credit ratings agencies Moody's Investors Service and Fitch today put Hertz on negative watch, which may lead to a downgrade, after a consortium of private equity groups bought the car hire group from Ford in a $15bn (€12.2bn) deal last night.

Moody's believes that the financial structure of the buy-out will significantly increase leverage and may downgrade about $5bn of unsecured debt to junk status.

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