The ratings on Capital Automotive LLC and Capital Automotive L.P. (collectively, CARS) reflect a highly leveraged capital structure, weak debt coverage measures, a concentrated tenant base, and the current weak macroeconomic environment, which has negatively affected auto sales. Mitigating these weaknesses are the company's generally stable portfolio of auto dealership properties located in growth markets and tenant-level rent coverage levels that remain adequate despite some deterioration. Privately held, McLean, Va.-based CARS invests in real estate leased primarily to franchised auto dealerships and other auto-related businesses. CARS focuses mainly on growth markets in the South, Southeast, and Southwest U.S., and nearly 80% of its investments are in the top 50 metropolitan areas in terms of population. At June 30, 2008, the
