Fitch rates Penske Truck Leasing notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Penske Truck Leasing Co. LP's $1.75 billion senior unsecured notes.

The issue consists of $875 million 3 1/8% notes issue due May 11, 2015 and $875 million 3¾% notes due May 11, 2017.

The proceeds will be used to repay borrowings on the General Electric Capital Corp. facility, Fitch said.

The company has a BBB+ long-term issuer default rating, which considers a $700 million equity injection from the general and limited partners.

The equity injection reduced leverage from 6.5x at the end of December 2011 to a range of 3x to 3.5x on a pro forma basis, Fitch said.

The ratings also reflect its established market position in the truck leasing business, experienced management team, strong asset quality and relatively consistent operating performance through various economic cycles, the agency said.

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