S&P: Group 1 Automotive unchanged

Standard & Poor's said that the ratings and outlook on Group 1 Automotive Inc. (BB/negative) would not be affected at this time by the company's announcement that it has acquired three BMW/Mini dealerships in the United Kingdom.

The acquisition is relatively small and financed out of cash on hand, which was $39 million at the end of 2006, the agency said, adding that the dealerships, in aggregate, are expected to have about $180 million in annual revenues.

While the acquisition is consistent with the company's expansion strategy, S&P said it believes it is somewhat aggressive in light of the company's need to deploy cash towards improving credit measures for the existing rating.

Because the dealerships are luxury brands with solid sales growth potential, the acquisition should modestly enhance the company's business profile, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.