AutoNation Inc.'s Proposed $400 Million Senior Unsecured Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) May 19, 2020--S&P Global Ratings today assigned its 'BBB-' rating to Fort Lauderdale, Fla.-based auto retailer AutoNation Inc.'s proposed $400 million senior unsecured notes due in 2030. The company will use the proceeds to reduce borrowings under its revolving credit facility and commercial paper program. Over the longer term, this will give the company the flexibility to repay all of its outstanding 2021 notes. In our view, the debt issuance is largely leverage neutral. Its financial flexibility will improve with the increased availability under its revolver and extended debt maturities. The proposed senior notes will rank equally with all existing and future senior unsecured debt. Our 'BBB-' credit rating on AutoNation is unchanged, and the

...May 19, 2020 NEW YORK (S&P Global Ratings) May 19, 2020--S&P Global Ratings today assigned its '###-' rating to Fort Lauderdale, Fla.-based auto retailer AutoNation Inc.'s proposed $400 million senior unsecured notes due in 2030. The company will use the proceeds to reduce borrowings under its revolving credit facility and commercial paper program. Over the longer term, this will give the company the flexibility to repay all of its outstanding 2021 notes. In our view, the debt issuance is largely leverage neutral. Its financial flexibility will improve with the increased availability under its revolver and extended debt maturities. The proposed senior notes will rank equally with all existing and future senior unsecured debt. Our '###-' credit rating on AutoNation is unchanged, and the outlook remains negative....

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