Our ratings on Capital Automotive LLC and its operating company, Capital Automotive L.P. (collectively, CARS), reflect the company's highly aggressive debt leverage, the risks posed by a large debt maturity in late 2012, and the encumbered, single-purpose nature of its asset base. However, the company's credit profile benefits from the relatively stable nature of its revenues, which are derived principally from rental income from its auto dealership properties, and CARS' recently-bolstered cash position, which is now large relative to near-term cash requirements. Privately held McLean, Va.-based CARS invests in real estate leased primarily to franchised auto dealerships and other auto-related businesses. CARS is owned by funds managed by DRA Advisors LLC (DRA), a real estate investment advisor based in New
