S&P rates AutoTrader.com loans BB+

Standard & Poor's said it assigned a BB+ corporate credit rating to AutoTrader.com, subsidiary of Cox Enterprises Inc.

The agency assigned AutoTrader.com's proposed $525 million senior secured credit facilities a rating of BB+ with a recovery rating of 3.

The outlook is stable.

Proceeds will be used to redeem outstanding shares of AutoTrader.com's common stock.

"The BB+ corporate credit rating reflects the intense competition of the online automotive classified market, AutoTrader.com's concentration of earnings from this market, and some cyclicality in the business," S&P analyst Jeanne Shoesmith said in a statemnet.

"The company's leading market share, strong brand, good discretionary cash flow and moderate credit measures somewhat offset these negative factors."

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