S&P lowers KAR outlook to stable

Standard & Poor's said it revised its outlook on KAR Holdings Inc. to stable from positive.

At the same time, the agency said it affirmed the B- long-term corporate credit rating and all debt issue ratings on KAR.

The outlook change reflects its view that the company's performance over the next year, including the effect of weaker economic conditions in North America, will limit improvement in KAR's earnings and cash flow expansion in the year ahead, S&P added.

The ratings on KAR reflect its heavy debt from its leveraged buyout in 2007 and low prospective cash flow generation, partly offset by a weak business position, the agency added.

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