Moody's gives Morgan Auto Ba3, notes B2

Moody's Investors Service said it assigned first-time ratings to LCM Investments Holdings II, LLC (Morgan Automotive), including a Ba3 corporate family rating, a Ba3-PD probability of default rating and a B2 rating to Morgan's planned $650 million of senior unsecured notes issue.

"Morgan is well-positioned in its core Florida market, with a meaningful presence in the central part of the state, and has a favorable operating and acquisition track record, resulting in a reasonable quantitative profile, with debt/EBITDA of around 4.5 times and EBIT/interest of around 3.5 times, both of which are pro forma for this proposed new financing," stated Charlie O'Shea, a Moody's vice president, in a press release.

Proceeds will be used in addition to proposed unrated senior secured credit facilities to refinance Morgan's debt, pay a dividend to shareholders and increase Morgan's cash balance

The outlook is stable.

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