S&P rates Ryder System notes BBB+

S&P said it assigned a BBB+ rating to Ryder System Inc.'s proposed senior unsecured medium-term notes.

The proceeds will be used to refinance existing debt and for general corporate purposes.

The long-term BBB+ issuer 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, S&P said.

The rating also considers 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.

Ryder's capital structure consists of unsecured debt with a modest amount of senior unsecured debt at its subsidiaries, S&P said.

The agency said it rates the company's unsecured debt BBB+, which is the same level as the issuer credit rating because no significant elements of subordination risk are present in its capital structure.

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