UPDATE 1-Dollar Thrifty amends credit terms to keep compliance

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Sept 30 (Reuters) - Car rental company Dollar Thrifty Automotive Group Inc (DTG.N) said it has amended its credit agreements for 60 days to comply with the terms of its debt covenant.

The amendment was needed as the company's leverage ratio had fallen out of permitted levels due to problems in the third quarter with per day revenue and vehicle depreciation costs, as well as the bankruptcy of one of its tour operators.

The modification of the debt covenant will, for the next 60 days, allow the leverage ratio to be calculated based on corporate EBITDA for the trailing quarters ended June 30, 2008, rather than the most recent trailing four quarters.

The amendment also prohibits the company from further borrowings under the facility and from requesting the issuance of additional letters of credit as enhancement for its commercial paper and medium-term note programs.

Dollar Thrifty said it does not anticipate a need for additional enhancement letters during this period, and expects to maintain at least $60 million of cash and cash equivalents through November 30.

But depending on actual third-quarter results the company may seek additional modifications to its leverage ratio during the 60-day amendment period and may try and reduce its non-vehicle debt, Tulsa, Oklahoma-based Dollar Thrifty said in a statement.

Shares of the company were down 8.92 percent at $1.94 in morning trade on the New York Stock Exchange. (Reporting by Amulya Nagaraj in Bangalore; Editing by Anthony Kurian)