Moody's cuts Group 1 Automotive view to negative

Moody's Investors Service said it revised Group 1 Automotive's outlook to negative from stable following the proposed unrated $250 million senior convertible note offering.

All debt ratings are affirmed.

Moody's said the change in outlook reflects Group 1's increased leverage from the proposed recapitalization with adjusted debt/EBITDA increasing to 4.7x from 3.8x in the last 12 months ended March 31.

Ratings affirmed include the corporate family rating at Ba2 and the $150 million 8.25% guaranteed senior subordinated notes due 2013 at B1.

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