S&P assigns AutoNation notes BBB-

S&P said it assigned its BBB- rating to AutoNation Inc.'s upcoming sale of $600 million of senior unsecured notes.

AutoNation’s BBB- credit rating is unchanged by the offering, the agency said.

The company will use the proceeds to pay down commercial paper, revolver borrowings and for general corporate purposes, including its AutoNation USA expansion, acquisitions and share repurchases.

“In our view, the debt issuance is largely leverage neutral initially because proceeds will pay down those borrowings and build cash on the balance sheet, but leverage will increase slightly over time with investments and share repurchases,” S&P said in a press release.

The outlook remains stable.

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