S&P: Asbury Automotive unaffected

Standard & Poor's said it Asbury Automotive Group Inc.'s (BB-/stable) announcement that it has initiated a 20 cents per share quarterly dividend has no effect on the ratings or outlook on the company.

The agency said that the company will fund the initial $6.5 million dividend, payable on Aug. 11 with excess cash balances, which totaled $89 million on June 30.

Asbury is expected to generate sufficient cash flow to pay future dividends without raising debt levels, partly due to a recent pull back in its acquisition plans because of high asking prices, S&P said.

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