Moody's reviews Group 1 Auto

Moody's Investors Service said it placed the Ba3 corporate family and probability-of-default ratings of Group 1 Automotive, Inc. on review for downgrade.

This review results from concern that Group 1 may have difficulty continuing to reduce leverage to levels necessary for the maintenance of its current Ba3 rating, according to the agency.

"While Group 1 has succeeded in reducing absolute debt levels, reductions in EBITDA resulting from the difficult macroeconomic environment result in the very real possibility that the company will not be able to sufficiently reduce leverage to an acceptable level in the near term," Moody's analyst Charlie O'Shea said in a written statement.

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