On Nov. 30, 2005, Standard&Poor's Ratings Services said its ratings on Capital Automotive REIT and Capital Automotive L.P. (collectively CARS) remain on CreditWatch with negative implications, where they were placed Sept. 7, 2005, following the company's announcement that it had agreed to be acquired by Flag Fund V LLC. At the same time, preliminary ratings of 'BB+' and 'BB-' are assigned to Capital Automotive L.P.'s proposed $1.670 billion secured credit facility and Capital Automotive REIT's proposed $500 million senior unsecured notes, respectively (see list). Proceeds of the two debt instruments will help fund the $3.4 billion acquisition of CARS and repay all existing rated senior unsecured debt securities. On Sept. 6, 2005, CARS announced that it had entered
