S&P Raises Group 1 Automotive Outlook
NEW YORK - Standard & Poor's Ratings Service on Friday raised its outlook on Group 1 Automotive Inc., citing the auto retailer's higher earnings and lower debt, The Associated Press reported.
The credit ratings agency changed its outlook to "Positive" from "Stable" and said there is a 33 percent probability it will raise the company's rating in the next year.
S&P also affirmed the company's current speculative "B+" corporate credit rating.
The ratings agency's view assumes that sales of new autos will increase in the year ahead and Group 1 will continue to lower debt levels and be more judicious in spending.
S&P said the company's diverse sources of revenue proved resilient during the economic downturn.
Shares of Group 1, based in Houston, fell by $1.38, or 5 percent, to $26.66 in afternoon trading.
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