Fitch rates Penske notes BBB+

Fitch Ratings said it expects to assign a rating of BBB+ to the $300 million five-year senior unsecured debt co-issued by Penske Truck Leasing Co., LP and PTL Finance Corp.

Fitch also said it assigned a long-term issuer default rating of BBB+ with a stable Outlook to PTL Finance, a wholly owned subsidiary of Penske Truck.

PTL Finance has a long-term issuer default rating of BBB+ and senior unsecured debt rating of BBB+.

The expected unsecured debt rating reflects the fact that the debt is expected to rank pari passu with all other senior unsecured debt issued by PTL and/or PTL Finance, the agency said.

The equalization of the expected rating with Penske’s issuer default rating reflects the predominantly unsecured funding profile and unencumbered asset coverage available to senior unsecured creditors.

Fitch said it does not believe there will be a material impact on the company’s leverage as a result of the issuance because proceeds will be used to refinance $300 million of unsecured debt due in July 2014. Therefore, the expected issuance has no impact on the ratings or outlook, the agency said.

The ratings do reflect the company’s established market position in the truck leasing business, growing market share in the logistics and supply chain solutions business, operating consistency and strong liquidity and funding profile, Fitch said.

Rating constraints include the cyclicality inherent in used vehicle pricing and the commercial rental business, customer concentration in its supply chain and logistics segments and the potential regulatory impacts on business trends, the agency said.

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