Fitch to rate Penske notes BBB+'

Fitch Ratings said it expects to assign a BBB+ rating to Penske Truck Leasing Co., LP and PTL Finance Corp.'s proposed issuance of $300 million, five-year senior unsecured notes due July 2025. A fixed-rate of interest will be determined at the time of issuance.

“The expected rating is aligned with the ratings of all other senior unsecured debt issued by Penske. The equalization of the unsecured debt rating with Penske's long-term issuer default rating (IDR) reflects its predominately unsecured funding profile and the presence of unencumbered assets, which suggest average recovery prospects in a stress scenario,” the agency said in a press release.

Fitch said it doesn’t see the issuance having a material effect on Penske's leverage, as the proceeds will be used to repay indebtedness and for general corporate purposes.

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