Privately held Capital Automotive LLC, which invests in real estate leased primarily to franchised auto dealerships, is establishing a $1.5 billion senior secured term loan and $200 million senior secured revolving credit facilities, and plans to use borrowings to refinance a substantial portion of its debt outstanding. This pending transaction will lengthen the company's debt maturity schedule, lower fixed charges, and enhance near-term liquidity. We have raised our corporate credit ratings on Capital Automotive LLC and its operating company, Capital Automotive L.P. (collectively, CARS), to 'B+' from 'B'. We have assigned 'B+' senior debt issue ratings and '3' recovery ratings to CARS' proposed new facilities. The rating outlook is stable based on our view that financial leverage will likely remain
