S&P rates Ryder notes BBB+

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

The company will use the proceeds for general corporate purposes, including to reduce commercial paper borrowings.

“We rate the company's unsecured debt BBB+, the same as our corporate credit rating, because no significant elements of subordination risk are present in its capital structure,” the agency said in a news release.

S&P said the BBB+ corporate credit rating on Ryder reflects the company's strong position as one of the two major participants in the full-service truck-leasing market and the strong and stable cash flows this business generates.

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

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