Moody's changes AutoNation outlook to stable

Moody's Investors Service said it confirmed the debt ratings of AutoNation Inc. and changed the outlook to stable from negative.

Ratings confirmed include the company's Ba2 rated senior guaranteed unsecured notes and senior guaranteed credit facilities and the company's Ba3 senior unsecured issuer rating.

Moody's said the change in outlook reflects a strengthening of AutoNation's financial position due to operating factors, despite significant cash outflows since October 2002. Moody's said it believes that AutoNation is more strongly positioned to weather future cash drains, including an increase in acquisition or share repurchase activity.

Liquidity has remained good despite one-time expenditures of $800 million for tax payments and share repurchases over the past year, with sufficient availability of backup liquidity to manage upcoming needs.

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