S&P gives Asbury Automotive notes B

Standard & Poor's said it assigned its B ratings to Asbury Automotive Group Inc.'s proposed $150 million senior subordinated notes due 2017 and $100 million subordinated convertible notes due 2012.

The notes rank equally with all of Asbury's existing and future senior subordinated indebtedness, the agency said, noting that the net proceeds from the debt issue are expected to be used to repay Asbury's $250 million 9% senior subordinated notes due 2012.

At the same time, S&P said it affirmed its BB- corporate credit rating on the company, adding that the ratings on Asbury reflect its aggressive growth strategy and financial profile, combined with its weak business position as a consolidator in the highly fragmented, cyclical and competitive U.S. automotive retail industry.

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