The ratings on privately held McLean, Va.-based Capital Automotive LLC and its operating company, Capital Automotive L.P. (collectively, CARS), reflect Standard&Poor's Ratings Services' view of the company's financial risk profile as "highly leveraged" and its business risk profile as "fair," with relatively stable revenues and cash flow. The ratings also reflect uncertainties regarding CARS' ownership structure. CARS invests in real estate, leased primarily to franchised auto dealerships and other auto-related businesses. DRA Advisors LLC, a real estate investment firm, acquired the company in a highly leveraged transaction in 2005 and controls CARS through an investment fund. CARS' auto dealer tenants are vulnerable to the cyclicality of the auto sector, but because the tenant base is competitive and resilient,
