DOW JONES NEWSWIRES 
 

Dollar Thrifty Automotive Group Inc. (DTG) gained flexibility in fleet financing in conjunction with a reduction of a credit facility as the company navigates the financial crisis.

The move gives the car-rental company flexibility to buy cars based on favorable pricing and allows it to reduce its credit exposure to the residual-value guarantees provided by the vehicle manufacturers.

The approvals from Dollar Thrifty's ratings agencies and insurers end the requirement that it maintain a percentage of the value of its vehicle inventory under manufacturer-guaranteed repurchase or depreciation programs.

The approval comes just a day after Ford Motor Co. (F) posted a 90% plunge in January sales to rental companies and General Motors Corp. (GM) reported an 80% drop in fleet sales to 13,000 - the lowest level since 1975. Car-rental companies, a big chunk of fleet sales, are under financial straits amid falling rental demand and trimming back purchases.

Dollar Thrifty also amended its credit pact to reduce the size of its total revolving loan and letter of credit commitment to $290 million as the company seeks to scale down its business to reflect the current economic environment.

Last month, Dollar Thrifty warned again of a "significantly" wider fourth-quarter loss on lower revenue as the car rental market struggled amid the broader auto industry's woes. Still, the company - whose brands are Dollar Rent A Car and Thrifty Car Rental - said it will end the quarter with more than $210 million in cash as operating losses and changes in working capital were offset by a $100 million cash dividend from its vehicle-finance subsidiary.

Dollar Thrifty is viewed as more vulnerable than some other car rental companies in part because of its ties to Chrysler LCC. The rental firm was spun off by Chrysler in 1997, and Chrysler products still account for a large part of its fleet.

Shares closed down 2.4% Wednesday at $1.21 and have lost 93% of their value in the past year.

-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com