S&P upgrades Penske

S&P said it raised Penske Truck Leasing Co. LP’s corporate credit rating to BBB from BBB-.

The agency also said it raised the rating on the company's senior unsecured debt to BBB from BBB- and removed the ratings from under criteria observation (UCO) that was applied Dec. 14.

The outlook is stable.

The upgrade follows the publication of updated criteria for rating operating leasing companies and reflects a more favorable assessment of the company’s business risk profile to strong from satisfactory, S&P explained.

The agency said it still considers the company’s financial risk profile as significant.

Penske is one of two large U.S. truck leasing companies with fairly diversified customer base, moderately cyclical lease rates and relatively stable lessor cash flow, S&P said.

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