A cash position that has been significantly bolstered by recent transactions. Stable revenue, derived largely from rental income on auto dealership properties. Auto dealer tenants have generally outperformed industry norms. High leveraged capital structure. Substantial debt maturities in 2012. Assets are single-purpose in nature. Asset base is almost completely encumbered. Our ratings on Capital Automotive LLC and its operating company, Capital Automotive L.P. (collectively, CARS), reflect the company's highly aggressive debt leverage, the risks posed by a large debt maturity in late 2012, and the encumbered, single-purpose nature of its asset base. However, the company's credit profile benefits from the relatively stable nature of its revenues, which are derived principally from rental income from its auto dealership properties, and CARS'
