S&P views American Auto negatively

S&P said it revised its outlook for American Auto Auction Group LLC to negative from stable and affirmed its B- issuer rating.

“AAAG's financial performance in 2022 has dragged because of weaker auction volumes and inflationary cost pressures that burdened top-line sales, EBITDA margins, and FOCF. Auction volumes and sales have suffered due to the reduced availability of used vehicles and weaker demand from buyers,” the agency said in a press release.

S&P warned it could lower AAAG’s ratings over the next 12 months if it posts negative FOCF that significantly reduces its liquidity.

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