Fitch rates Ryder notes A-

Fitch Ratings said it expects to assign an A- rating to Ryder System Inc.'s $350 million senior unsecured notes due 2019.

Fitch said it does not believe there will be a material impact on Ryder's leverage as a result of the issuance, as proceeds are expected to be used to refinance term debt outstanding and for general corporate purposes.

The company has a long-term issuer default rating of A-, short-term issuer default rating of F2, commercial-paper rating of F2 and senior unsecured notes rating of A-.

The outlook is stable.

The expected rating is equalized with the ratings assigned to Ryder's existing senior unsecured debt as the new notes will rank equally in the capital structure, Fitch said.

The equalization of Ryder's unsecured debt with its long-term issuer default rating reflects the company's 100% unsecured funding profile, the agency said.

The ratings reflect the company's established market position in the truck leasing business, its operating consistency, strong liquidity and funding profile, relatively low leverage and solid capitalization, Fitch said.

Rating constraints include the company's pension burden, cyclicality inherent in used vehicle pricing and the commercial rental business, the agency said, and the regulatory impact on business trends.

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