S&P rates Penske notes BBB-

Standard & Poor's said it assigned its BBB- issue rating to the $1.5 billion senior notes due 2016 and 2018 co-issued by Penske Truck Leasing Co. LP and PTL Finance Corp.

The agency said the ratings on Penske reflect the company's significant market positions in its major businesses, full-service lease and contract maintenance and commercial rental. The company has contracted most of its revenues under long-term leases, which generate relatively stable cash flow, even during periods of economic weakness.

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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