Ford announces sale of Hertz: F announced an agreement to sell Hertz to a Clayton Dubilier private equity group for $15 billion (including $5.6 billion for equity and the remainder in debt assumption).
Modest Credit Positive: We regard the sale as a modest positive as it eliminates uncertainty and provides cash that may be used for restructuring.
We maintain Market Perform: We maintain a Market Perform on F and rate F BB+ with a Deteriorating Credit Trend.
Investor risk tolerance is key: Investors should consider whether F bonds are appropriate investments in light of their risk tolerance profile.
Source: UBS
|
