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Bulletin: AutoTrader.com Inc. Ratings Unaffected By Acquisition Of VinSolutions May 11
Standard & Poors, May 2011
Abstract
CHICAGO (Standard & Poor's) May 20, 2011--Standard & Poor's Ratings Services said today that AutoTrader.com's recent announcement that it has agreed to acquire VinSolutions LLC will not affect its 'BB+' corporate credit rating and stable outlook on the company. We expect AutoTrader will increase its debt outstanding to fund the acquisition. We expect the transaction to close by mid-June. VinSolutions provides Internet-based platforms--including customer relations management (CRM), Internet lead management, and inventory control solutions--for auto dealers. VinSolutions will continue to operate as a stand-alone entity, and cost savings opportunities are expected to be minimal. Pro forma for recent transactions, we expect AutoTrader's lease-adjusted debt leverage to increase to the mid-4.0x area following the acquisition of VinSolutions. Still, we believe that...
Companies mentioned in this report are: AutoTrader.com, Inc.
Action: Bulletin
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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