Fitch rates Ryder notes A-

Fitch Ratings said it expects to assign an A- rating to Ryder System Inc.'s $400 million senior unsecured notes due 2019.

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 ratings reflect an expectation that there will not be a material impact on Ryder's leverage as a result of the issuance, Fitch said, as proceeds are expected to be used to reduce commercial-paper balances and for general corporate purposes.

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, the agency said.

The ratings also consider its established market position, growing market share in the supply-chain solutions business, operating consistency, strong liquidity and solid capitalization, Fitch said.

Rating constraints include the company's pension burden, cyclicality inherent in used-vehicle pricing and the commercial rental business, customer concentration and potential regulatory impacts, the agency said.

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