S&P drops Group 1 Automotive view to negative

Standard & Poor's said it revised the outlook of Group 1 Automotive Inc. to negative from stable because of increased debt levels that will result from the company's new $250 million convertible notes.

The BB corporate credit rating on the company was affirmed, the agency said.

S&P noted that the ratings reflect a weak financial profile resulting from an aggressive acquisition strategy, combined with the competitive and cyclical challenges of the automotive retail industry.

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