Investing.com -- On June 2, 2025, H&E Equipment Services (NASDAQ:HEES) Inc., a U.S.-based equipment rental company, confirmed the completion of its acquisition by Herc Holdings (NYSE:HRI) Inc., a higher-rated firm in the same industry. Following the acquisition, S&P Global Ratings upgraded the issuer credit rating (ICR) of H&E to ’BB’, aligning it with Herc’s rating. The rating was subsequently withdrawn at the request of H&E.
The ’BB’ rating was assigned to H&E after it was removed from CreditWatch, where it had been placed with positive implications since January 15, 2025. However, at the time of withdrawal, H&E’s outlook was negative, in line with Herc’s outlook.
In conjunction with these changes, S&P Global Ratings discontinued its ’BB-’ issue-level rating and ’3’ recovery rating on H&E’s senior unsecured notes. This action followed the full repayment of H&E’s outstanding rated debt.
S&P Global Ratings believes that H&E will become an integral and core part of Herc. The rating reflected the view that Herc will fully integrate H&E’s operations into its existing business. Therefore, at the time of withdrawal, S&P Global Ratings considered H&E’s credit quality as linked to Herc’s credit quality. The rating actions were announced by S&P Global Ratings on June 4, 2025.
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