S&P: Penske Truck notes BBB-

S&P said it assigned a BBB- rating to Penske Truck Leasing Co. LP and PTL Finance Corp.'s senior unsecured notes.

The proceeds will be used to repay the company’s outstanding debt and for general corporate purposes.

The BBB- corporate credit rating on Penske reflects the company's strong market positions in full-service truck leasing and commercial truck rentals, S&P said.

The company's revenue is generated primarily through long-term leases that produce relatively strong and stable cash flow even in periods of economic weakness, the agency said.

The ratings also consider Penske's substantial debt usage as its funds from operations-to-debt ratio is in the low 20% range and its debt-to-capital ratio is in the mid-70% range, S&P said.

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