S&P: Asbury Automotive view negative

Standard & Poor's said it revised the outlook on Asbury Automotive Group Inc. to negative from stable and affirmed its BB- corporate credit rating.

S&P said the outlook revision reflects expectations that Asbury's lackluster profitability will continue through 2009.

Challenges include cyclical demand, tough competition, product proliferation, high gasoline prices, tight consumer credit and thin profit margins, the agency said.

For the 12 months ended June 30, S&P said the issuer's lease-adjusted total debt-to-EBITDA ratio exceeded the high end of leverage expectation of 4.5 times to 5 times for the rating.

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