S&P puts Dealertrack on positive watch

Standard & Poor’s said it placed the B+ corporate credit rating on Dealertrack Technologies Inc. on CreditWatch with positive implications.

The agency also said it placed the BB- ratings on the company’s $575 million term loan due 2021 and $225 million revolving credit facility due 2019 on CreditWatch with positive implications.

The CreditWatch placement follows news that Dealertrack will be acquired by Cox Automotive Inc., a subsidiary of Cox Enterprises Inc.

Following the close of the transaction, S&P said it will likely withdraw the corporate credit rating on Dealertrack.

The acquisition of Dealertrack will expand Cox’s portfolio of automotive software solutions and will offer certain cross-selling opportunities to capture market share, the agency said.

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