Moody’s trims KAR Auction

Moody's Investors Service said it downgraded KAR Auction Services Inc.'s corporate family rating to B2 from B1, as well as the senior secured credit facilities rating to Ba3 (LGD2) from Ba2 and the senior unsecured rating to Caa1 (LGD5) from B3.

Moody's also changed the outlook to negative from stable due to the disruption and uncertainty that the coronavirus outbreak will cause to KAR's business model.

Moody's downgraded the speculative grade liquidity rating to SGL-3 from SGL-1.

“The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,” the agency said in a news release.

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