S&P affirms AutoNation

Standard & Poor's said it affirmed its BBB- corporate credit rating and stable outlook on AutoNation Inc.

S&P said the company intends to refinance its unsecured credit facilities. The refinancing bolsters the company's liquidity by extending maturities and relaxing covenants, although the latter could lead to higher leverage if the company chooses, the agency said.

"At the same time, we affirmed our BB+ issue-level ratings on the company's other senior unsecured debt, including its $300 million 7% notes due April 15, 2014 of which $15 million remains outstanding, and $400 million 6.75% notes due April 15, 2018," said S&P credit analyst Nancy Messer in a news release.

AutoNation's subsidiaries guarantee the senior notes, which rank equally to the revolving credit facility, and are subordinate to approximately $1.5 billion of secured floor-plan liabilities, according to S&P.

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