Fitch Revises Hertz Corp.'s Outlook To Positive; Affirms IDR at 'BB'.

CHICAGO -- Fitch Ratings has affirmed the following ratings:

The Hertz Corporation (Hertz)

--Issuer Default Rating (IDR) at 'BB';

--Senior secured revolving facility at 'BBB';

--Secured term facility at 'BBB-';

--Letter of credit facility at 'BBB-';

--Senior unsecured debt at 'BB-';

--Subordinated Debt at 'B+';

The Rating Outlook has been revised to Positive from Stable.

The affirmation of Hertz's (NYSE:HRZ) ratings reflects the following:

--Strength of the company's market position in the airport car rental and commercial equipment markets and ability and experience in managing through cyclicality and seasonality inherent in car and equipment rental sectors;

--Ample liquidity to support growth;

--Limited financial flexibility as a primarily secured borrower;

--Weak capitalization/Lack of tangible equity.

The Positive Rating Outlook reflects the improvements in operating performance, cash flow available to repay debt and collateral coverage since being spun-off from the Ford Motor Company (Ford) in late 2005.

Key drivers for a ratings upgrade include the expectation that management's strategy to grow revenue, improve operating efficiency and offset rising fleet costs will continue to generate sustainable operating performance improvement and cashflow to further delever the company.

Further improvements in cash flow available for debt repayment or strengthening of collateral coverage may result in upward notching of individual ratings from their current levels relative to Hertz's IDR, including equating the senior unsecured debt rating with the IDR.

Negative rating factors include any significant operating cash flow deterioration and weakening of the company's financial profile resulting from either a cyclical downturn or exogenous events that restrict or inhibit travel.

Fitch has also affirmed and withdrawn the following ratings:

The Hertz Corporation

--Short-term Issuer Rating at 'B';

--Commercial paper at 'B';

Hertz Finance Centre Plc

--Issuer Default Rating (IDR) at 'BB';

--Short-term Issuer Rating at 'B';

--Commercial paper at 'B';

Hertz Australia Pty

--Short-term Issuer Rating at 'B';

--Commercial paper at 'B';

Hertz Canada Ltd.

--Short-term Issuer Rating at 'B';

--Commercial paper at 'B'.

The commercial paper ratings have been withdrawn as no commercial paper is expected to be outstanding. Withdrawal of the Hertz Finance Centre Plc ratings reflects full repayment of debt.

Based in Park Ridge, N.J., Hertz is the world's largest general use car rental brand and largest on-airport car rental brand in the United States and one of the largest commercial equipment rental companies in the United States. Together, Hertz operates or franchises approximately 7,800 car rental locations in more than 145 countries with a vehicle fleet of more than 475,000 units at Dec. 31, 2006.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.