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Recovery Report: KAR Auction Services Inc.'s Recovery Rating Profile May 11
Standard & Poors, May 2011
Standard & Poor's Ratings Services is assigning its recovery ratings to KAR Auction Services Inc.'s (KAR) new senior secured debt facilities. We are maintaining our recovery rating on KAR's senior unsecured debt. Our simulated default scenario contemplates a payment default in 2013, resulting from a severe downturn in the auto industry. (For Standard & Poor's recovery rating methodology, see "Criteria Guidelines For Recovery Ratings-," published Aug. 10, 2009, on RatingsDirect on the Global Credit Portal.) KAR is the borrower and operates through three principal subsidiaries: ADESA Inc. (59% of revenues), IAAI (Insurance Auto Auctions Inc. (34%), and AFC (Automotive Finance Corp.; 7%). AFC and its subsidiary, AFC Funding Corp., also have access to receivables finance facilities in the U.S. and...
Companies mentioned in this report are: KAR Auction Services Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
KAR Auction Services Inc.