AutoNation Inc.'s $750 Million Proposed Senior Unsecured Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) Nov. 7, 2017--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Fort Lauderdale, Fla.-based auto retailer AutoNation Inc.'s proposed senior unsecured notes. The company states it will use the proceeds to reduce borrowings under its commercial paper program and revolving credit facility. In our view, the debt issuance will have no significant impact on the company's financial metrics; moreover, its financial flexibility will be improved by increasing availability under its revolver and extending the duration of maturities. The proposed senior notes will rank equally with all existing and future senior unsecured debt and will be senior to all of the future subordinated debt issued by the company. The notes will be guaranteed on a

...NEW YORK (S&P Global Ratings) Nov. 7, 2017--S&P Global Ratings today assigned its '###-' issue-level rating to Fort Lauderdale, Fla.-based auto retailer AutoNation Inc.'s proposed senior unsecured notes. The company states it will use the proceeds to reduce borrowings under its commercial paper program and revolving credit facility. In our view, the debt issuance will have no significant impact on the company's financial metrics; moreover, its financial flexibility will be improved by increasing availability under its revolver and extending the duration of maturities. The proposed senior notes will rank equally with all existing and future senior unsecured debt and will be senior to all of the future subordinated debt issued by the company. The notes will be guaranteed on a senior basis by substantially all of the direct and indirect domestic subsidiaries of the company. The ratings on AutoNation reflect our assessment of the company's consistent free cash flow generation and adequate liquidity....

Ratings Action