S&P rates Cox loan BBB

Standard & Poor’s said it assigned a BBB rating to Cox Enterprises Inc.’s $1.85 billion senior unsecured term loan due 2017.

The proceeds from the transaction will be used to finance part of the acquisition of Dealertrack Technologies Inc.

Cox announced June 15 that it had entered into a definitive agreement to acquire Dealertrack Technologies for $4.65 billion through Cox’s subsidiary, Cox Automotive, S&P said.

The BBB corporate credit rating on Cox is unchanged and the outlook remains negative, the agency said.

The negative outlook reflects a view that pro forma leverage of about 3.3x is high for the rating level and incorporates uncertainty about the company’s willingness to reduce leverage over the next two years, S&P said.

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