Privately held McLean, Va.-based Capital Automotive LLC and its operating company, Capital Automotive L.P. (collectively, CARS), invest in real estate leased primarily to franchised auto dealerships and other auto-related businesses. Standard&Poor's Ratings Services' ratings on CARS reflect the company's "highly leveraged" financial risk profile, which is partially offset by its "fair" business risk profile, with relatively stable revenues and cash flow. The ratings also take account of the uncertainties posed by CARS' ownership structure: DRA, a real estate investment firm, acquired the company in a highly leveraged transaction in 2005, and now controls CARS through its investment funds. While CARS' auto dealer tenants are subject to the cyclicality of the auto sector, its tenant base is relatively strong
