Moody's affirms Central Parking

Moody's Investors Service said it affirmed Central Parking Corp.'s Ba3 corporate family rating, Ba3 $225 million senior secured revolving credit facility due 2008, Ba3 $74 million senior secured term loan facility due 2010 and B2 $78 million 5.25% convertible trust issued preferred securities (issued by the Central Parking Finance Trust). The outlook is stable.

Although profitability levels declined in fiscal 2005 and the company faced significant challenges related to its U.K. operations, Moody's said the company completed opportunistic sales of real estate at substantial multiples to reported earnings, and proceeds from these property sales were about $82 million. Debt balances declined from $284 million at Sept. 30, 2004 to about $226 million at Dec. 31.

Moody's said the affirmation anticipates improved profitability in 2006, further debt reduction with proceeds from asset sales and continued high levels of owned real estate relative to funded debt.

Concern remains regarding the adverse effects of major business interruptions potentially caused by strikes in professional sports leagues or terror-related events, the agency noted. Adjusted debt to EBITDA was about 5.8x at Dec. 31.

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