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Bulletin: KAR Auction Services Inc. Ratings Unaffected By Debt-Reduction Plan Nov 10
Standard & Poors, Nov 2010
Abstract
NEW YORK (Standard & Poor's) Nov. 10, 2010--Standard & Poor's Ratings Services today said that the plan by KAR Auction Services Inc. (B/Stable/--) to reduce debt by $150 million, if senior secured lenders approve a proposed amendment, is positive for credit quality but does not affect the corporate credit rating or recovery ratings. We estimate that the proposed $150 million debt reduction, which we assume would be permanent, combined with increased EBITDA that the company estimates will be $470 million for 2010, could lower lease-adjusted leverage at year-end 2010 to less than the 4.8x we calculated for the 12 months ended Sept. 30, 2010. We previously noted that we could raise the ratings if KAR's lease-adjusted leverage continues to decline...
Companies mentioned in this report are: KAR Auction Services 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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