S&P rates AutoTrader loans BB+

Standard & Poor's said it assigned AutoTrader.com Inc.'s $950 million senior secured credit facilities a BB+ rating with a recovery rating of 3, indicating expectation of 50% to 70% recovery.

The credit facilities consist of a $600 million term loan B due 2016, $200 million term loan A due 2015 and a $150 million revolving credit facility due 2015.

Proceeds will be used to help refinance existing facilities and fund the $535 million acquisition of Kelley Blue Book Co. The equity was provided by Cox Enterprises Inc. (BBB-/positive/A-3) and Providence Equity Partners, which continue to maintain 68% and 25% respective ownership stakes.

"The BB+ corporate credit rating reflects our expectation that that steadily improving operating performance will enable the company to restore debt leverage to under 3.0x by the end of 2012," S&P analyst Hal Diamond said in a statement.

The company's leading market share, strong brand and good discretionary cash flow generation support the company's fair business risk profile, S&P said.

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