S&P applies BBB+ to Ryder notes

S&P said it assigned its BBB+ issue-level rating to Ryder System Inc.'s medium-term notes.

The company will use the proceeds for general corporate purposes, including to repay its debt, for working capital and to fund its capital expenditures, acquisitions and share repurchases.

S&P said the ratings reflect the company's strong market position in full-service truck leasing – as it is one of the two major participants – and the strong and stable cash flows this business generates.

The ratings also incorporate Ryder's supply chain and logistics businesses, which generate lower margins than its full-service truck leasing business, and the cyclicality of its commercial truck rental business, the agency added.

S&P characterizes Ryder's business risk profile as strong and its financial risk profile as intermediate.

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