...On Dec. 29, 2008, Standard & Poor's Ratings Services lowered its corporate credit ratings on Capital Automotive LLC and Capital Automotive L.P. (collectively CARS) to '##' from '##+'. The outlook remains negative. At the same time, we lowered the senior secured rating to '##'. The recovery rating remains a '3' (see list). The downgrades reflect the immense pressure CARS' auto dealer tenant base faces due to a significant drop in auto sales. We expect low consumer demand to continue in 2009 due to uneasy consumers, macroeconomic weaknesses, and shortages of consumer financing. If auto owners delay servicing their vehicles, dealer profits will come under greater pressure than they are currently experiencing. We believe CARS' tenant rent coverage will continue to decline and could fall below 2x in 2009; additionally, prolonged weakness would likely challenge the ability of some tenants to meet their rental obligations. CARS also faces the maturity of its revolver in December 2009 and the maturity...
