S&P upgrades KAR Auction

Standard & Poor's said it has raised its corporate credit rating and related issue ratings on KAR Auction Services Inc. to B from B-. The ratings were removed from a CreditWatch that began in December.

The outlook is stable.

The upgrade reflects the a view that KAR's credit profile has improved following the company's various financial transactions that raised new capital and permanently reduced debt, S&P said.

The upgrade also reflects an assumption that the company's financial policies will remain largely unchanged as a result of the initial public offering, including an expectation that KAR will use its free cash flow primarily to further reduce debt permanently, the agency said.

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