Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers P > Headlines for Penske Automotive Group Inc. > News item |
S&P puts Penske on review
Standard & Poor's said it placed its B+ corporate credit and B- issue ratings on Penske Automotive Group Inc. on CreditWatch with negative implications following news that Penske intends to acquire General Motors Corp.'s Saturn unit for up to $200 million.
Although details of the potential transaction are not available, the agency said it views Penske's cushion to take on additional leverage as limited at the current rating and that the Saturn transaction could exacerbate the company's high leverage and reduce liquidity.
S&P understands the transaction will not involve Penske's becoming a manufacturer or owning Saturn dealerships. Nonetheless, the agency said it would likely view the responsibility for future vehicle product selection and manufacturing strategy as carrying significant execution risk.
The lease-adjusted total debt-to-EBITDA ratio was 7.5 times for the 12 months ended March 31.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.