Part 5/15:
To illustrate this absurdity, consider JetBlue Airways, which has been downgraded to the same B minus despite its perilous financial position: over $3 billion in new debt, negative free cash flow, and a leverage ratio around 15 times EBIT. Similarly, Hertz, which emerged from bankruptcy with over $16 billion in debt and declining cash flows, also holds the same rating as Strategy. The key difference? Hertz's assets—fleet vehicles—are depreciating rapidly, and their business model is inherently cyclical and debt-dependent.