On Dec. 11, 2007, Standard&Poor's Ratings Services affirmed its 'BB+' corporate credit and senior secured ratings on Capital Automotive LLC and Capital Automotive L.P. (collectively CARS). Additionally, we affirmed the '3' recovery rating on CARS' $2.1 billion secured credit facility. The outlook remains stable (see list). The ratings on CARS reflect a highly leveraged capital structure, weak debt coverage measures, and a concentrated tenant base. These weaknesses are mitigated by the good stability of the company's portfolio of auto dealership properties located in growth markets. The ratings are also supported by the continuity of management and strategy following the company's acquisition by Flag Fund V LLC, a limited liability company advised by DRA Advisors LLC. McLean, Va.-based CARS
