Moody’s gives Group 1 add-on notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Group 1 Automotive, Inc.'s planned $200 million of senior notes add-on. Group 1's other ratings, including its Ba1 corporate family rating and Ba1-PD probability of default rating, are unchanged.

The rating assignment reflects governance considerations particularly the use of proceeds which will fund the acquisition of Prime Auto Group for around $880 million.

“"Moody's views this acquisition favorably as it will expand Group 1's presence in the Northeast, with locations in Massachusetts, New York, New Jersey, Maine and New Hampshire and will tilt Group 1"s overall brand mix more heavily towards premium/luxury/sport," said Charlie O’Shea, a Moody’s vice president, in a press release.

The outlook remains stable.

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