Moody's rates Asbury note B3

Moody's Investors Service said it assigned a B3 (LG5, 84%) rating to Asbury Automotive Group's proposed $150 million senior subordinated notes and affirmed the B1 corporate family and probability-of-default ratings and B3 (LGD5, 84%) $200 million 8% senior subordinated notes.

The outlook was revised to positive from stable.

The proceeds from the new notes, together with an unrated $100 million convertible note, are expected to be used to repay the company's $250 million 9% senior subordinated notes.

The agency said the positive outlook reflects the company's improving credit profile evidenced by improving credit metrics, conservative financial policies and moderating acquisition activity.

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