Moody's changes Group 1 view to negative

Moody's Investors Service said it affirmed all ratings of Group 1 Automotive, Inc., including the Ba2 senior secured bond rating but changed the outlook to negative from stable. The SGL-2 speculative grade liquidity rating is maintained.

"The outlook change to negative reflects the potential stress to Group 1's credit metrics, which at FYE 2019 were already testing downward rating triggers, due to the effects on all aspects of its business model of the coronavirus," stated Charlie O'Shea, a Moody's vice president, in a press release.

"The affirmation of the Ba1 rating recognizes the flexibility in Group 1's business model, which is already being demonstrated by significant cost reductions in reaction to the loss of volume due to the coronavirus, and which Moody's expects will alleviate some, but potentially not all, of the negative pressure on credit metrics," said O'Shea.

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