S&P: Penske Truck notes BBB-

Standard & Poor's said it assigned its BBB- issue rating to senior unsecured notes due 2014 and 2022 co-issued by Penske Truck Leasing Co. LP and PTL Finance Corp.

According to S&P, the company will use the proceeds from the offering to repay outstanding debt under its bank revolving credit facility as well as to repay a potion of debt it owes to General Electric Capital Corp. under the GE Capital Credit Facility.

The agency said the ratings reflect the company's significant market positions. The company has contracted most of its revenues under long-term leases, which generate relatively stable cash flow, even during periods of economic weakness, S&P said.

Partially offsetting these strengths are its capital intensity, weaker margins in the logistics segment and exposure to the domestic automotive sector.

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