Moody's affirms Group 1 Automotive

Moody's Investors Service said it affirmed the B1 corporate family and probability of default ratings for Group 1 Automotive, Inc, and assigned a preliminary B3 (LGD 5, 87%) rating to its senior unsecured shelf, preliminary B3 (LGD 5, 88%) rating to its senior subordinated shelf and preliminary B3 (6, 97%) rating to its preferred shelf.

The outlook was changed to stable from negative.

The change in outlook to stable from negative recognizes Group 1's improved debt-protection measures resulting from continued operating discipline and an overall upswing in the auto retailing segment, Moody's said.

Group 1 has done a nice job continuing to remain disciplined with its operating strategy in what remains a difficult macroeconomic environment, with the result that the risk of deterioration in its credit profile has diminished significantly, the agency said.

The ratings also consider Group 1's weak, though improving, credit metrics and strong market position in the fragmented auto retailing segment, Moody's said.

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