Standard&Poor's Ratings Services' ratings and stable outlook on Capital Automotive LLC and Capital Automotive LP (collectively, CARS) reflect a stabilization of U.S. light vehicle sales, which we believe has bolstered the financial prospects for CARS' auto dealer tenants. Stabilizing consumer confidence and credit availability should support slightly higher sales of new vehicles this year, as well as continued demand for parts and services. As tenant challenges have abated, so has the risk of erosion of rental cash flow coverage for CARS' portfolio, in our view. Despite CARS' modest deleveraging following the successful extension of its revolving credit facility and term loan last year, the company's leverage remains high (68% on an undepreciated book-value basis, or roughly 80% including
