Moody's downgrades CSK Auto

Moody's Investors Service said it downgraded all long-term ratings of CSK Auto, Inc. and lowered the company's speculative grade rating to SGL-4 from SGL-2.

Ratings downgraded and left on review for further possible downgrade include the corporate family rating to B1 from Ba3, the $100 million senior unsecured convertible notes due 2025 to B1 from Ba3, the $125 million senior unsecured notes due 2025 to B1 from Ba3 and the $225 million senior subordinated notes due 2014 to B3 from B2.

Moody's said the downgrade follows CSK's recent announcement that due to the continuing audit committee-led investigation into potential accounting errors and irregularities, it is unlikely to file its financial statements with the SEC by the July 2 deadline for filing financial statements as required by its convertible debt instruments and its credit agreement lenders.

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