S&P trims AutoCanada

S&P said it lowered its ratings on AutoCanada Inc. by one notch, including its issuer credit rating on the company, to B- from B.

The outlook is negative.

“We expect significantly lower vehicle sales volumes and reduced service traffic at AutoCanada Inc.'s dealerships in 2020 stemming primarily from consumer fears of contracting or spreading the coronavirus,” S&P said in a news release.

“As a result, we expect a cash flow deficit this year and credit measures that are likely to breach financial covenants under the company's revolving credit facility if AutoCanada is not granted relief by its lenders.”

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