S&P rates Penske Truck notes BBB

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

The company plans to use the proceeds from these notes to refinance its existing debt and for general corporate purposes.

The BBB issuer 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 primarily generates its revenue from long-term leases that produce relatively strong and stable cash flow, the agency said, even during periods of economic weakness.

The ratings also consider Penske's lower-margin logistics business and its substantial debt usage, S&P said.

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