01:35 PM EDT, 06/28/2024 (MT Newswires) -- Hertz Global Holdings ( HTZ ) shares fell as much as 2.3% in recent Friday trading after Fitch Ratings downgraded the company's senior unsecured debt rating to CCC-/RR6 from CCC+/RR5.

The agency said the downgraded rating is three notches below the company's Issuer Default Rating.

Fitch said Hertz's B- long-term IDR and debt ratings remain on Rating Watch Negative.

The downgrade "reflects structural subordination and Fitch's expectation that following the recently concluded secured issuances, recovery prospects for unsecured debt holders will be poor under a stress scenario, given the increased proportion of secured debt in the capital structure," according to Fitch.

Fitch also said it assigned a final BB-/RR1 rating to Hertz's upsized $750 million first-lien senior secured notes and a CCC/RR6 rating to the company's $250 million second-lien senior secured exchangeable notes.

Price: 3.45, Change: -0.06, Percent Change: -1.71