FORT LAUDERDALE, Fla., June 15 /PRNewswire-FirstCall/ -- AutoNation, Inc.
(NYSE: AN), America's largest automotive retailer, today announced that Fitch
Ratings has initiated coverage on its unsecured debt with a "BBB-" investment-
grade rating. This new rating matches Standard & Poor's existing investment-
grade rating and reaffirms AutoNation as the only public automotive retailer
with an investment-grade unsecured debt rating.
"Fitch and S&P recognize the strength of AutoNation's diversified business
model," said Mike Jackson, Chairman and CEO of AutoNation. "Together, their
investment-grade ratings are a validation of our model and financial
discipline. Over the last five years, we have strengthened our financial
position through a disciplined redeployment of over $4 billion in cash from
operations and other financial opportunities."
As a result of the new rating, AutoNation expects to enter the Lehman U.S.
Investment Grade Fixed Income Index on July 1, 2005. Lehman's indices are the
asset management industry's most widely held benchmarks, used by more than 90%
of U.S. institutional investors along with a significant number of foreign
investors.
Over the next couple of years, AutoNation's investment-grade status should
allow the company to restructure its floor plan and non-vehicle debt
facilities, improving its credit spreads by approximately 100 basis points.
AutoNation's diversified business model emphasizes a broad set of related
but distinct business lines, including new vehicles, used vehicles, parts and
service, and finance and insurance, as well as being diversified by geography
and manufacturer brands. This model limits the company's exposure to
downturns in specific market segments while enabling it to capitalize on
favorable conditions in others.
About AutoNation, Inc.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's
largest automotive retailer. A component of the Standard and Poor's 500 Index,
AutoNation has approximately 27,000 full-time employees and owns and operates
352 new vehicle franchises in 17 states. For additional information, please
visit http://corp.AutoNation.com or http://www.AutoNation.com , where more
than 100,000 vehicles are available for sale.
FORWARD-LOOKING STATEMENTS
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Additional discussion
of factors that could cause actual results to differ materially from
management's projections, estimates and expectations is contained in the
Company's SEC filings. The Company undertakes no duty to update its forward-
looking statements, including its earnings outlook.
SOURCE AutoNation, Inc.
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Related links:
http://corp.autonation.com
http://www.AutoNation.com
Company News On-Call:
http://www.prnewswire.com/comp/750525.html
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20001017/AUTONATIONLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Marc Cannon, AutoNation, Inc.,
+1-954-769-3146, or cannonm@autonation.com
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