S&P rates Penske notes BBB-

Standard & Poor’s said it assigned a BBB- rating to Penske Truck Leasing Co. LP’s senior notes.

The outlook is stable.

The proceeds will be used for repayment of debt.

The ratings reflect the company’s strong market position in full-service truck leasing and commercial truck rentals with revenues generated primarily through long-term leases that produce relatively strong and stable cash flow, even in periods of economic weakness, S&P said.

The ratings also reflect Penske’s substantial debt usage, which results in funds from operations-to-debt in the low-20% range, the agency said.

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