S&P rates Penske notes BBB

S&P said it assigned a BBB rating to Penske Truck Leasing Co. LP's proposed senior unsecured notes.

The proceeds will be used to refinance its existing debt and for general corporate purposes, S&P said.

The BBB issuer credit rating reflects the company's strong market positions in full-service truck leasing and commercial truck rentals, the agency said.

The company primarily generates its revenue from long-term leases that produce relatively strong and stable cash flow, even during periods of economic weakness, S&P said.

The ratings also reflect Penske's lower-margin logistics business and its substantial debt usage, the agency said.

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