S&P lifts Group 1 Automotive

Standard & Poor's said it raised the corporate credit rating on Group 1 Automotive Inc. to BB- from B+.

The outlook is stable.

"The upgrade reflects our belief that Group 1's creditworthiness has improved because of its resilient business model, including a high level of variable costs, and stabilization of the U.S. retail auto markets," S&P analyst Nancy Messer said in a statement.

"The upgrade also reflects the company's demonstrated ability to improve its credit measures and our belief that Group 1 will maintain that improvement," she continued.

Ratings reflect Group 1's fair business risk profile from its resilient business model, with its diverse revenue stream and variable cost structure, which is expected to support continued good profitability in the next two years.

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