Fitch Rates Penske Truck Leasing's Senior Unsecured Notes 'BBB+'

  Fitch Rates Penske Truck Leasing's Senior Unsecured Notes 'BBB+'

Business Wire

CHICAGO -- January 17, 2013

Fitch Ratings has assigned a 'BBB+' rating to Penske Truck Leasing Co. LP's
(PTL) senior unsecured notes. The notes are comprised of two $500 million
tranches with coupons of 2.875% and 4.25% and five- and 10-year maturities,
respectively. Fitch does not believe there will be a material impact on the
company's leverage as a result of the issuance, as proceeds will be used to
repay borrowings on the company's bank revolver and General Electric Capital
Corporation (GECC) credit facility.

RATING DRIVERS AND SENSITIVITIES

PTL currently has a Stable Rating Outlook, which reflects Fitch's expectation
for strong liquidity, higher capitalization, and earnings growth in 2013
driven by an increase in contractual full service lease activity, and organic
growth in logistics.

Fitch believes positive rating momentum could result from demonstrated access
to the unsecured markets through market cycles, increased funding
diversification, reduced leverage, and operating performance that is
consistent with Fitch's expectations and broader industry performance.

Negative rating action could be driven by an inability to economically access
the unsecured markets, a decline in earnings and/or free cash flow beyond
Fitch's expectations, deterioration in asset quality, an inability to realize
residual values on used vehicles, a reduction in liquidity or an extended
increase in leverage beyond the targeted range.

Established in 1988 and headquartered in Reading, Pennsylvania, PTL is a
leading provider of full service truck leasing, truck rental, contract
maintenance and logistics services. PTL is a partnership between GECC (49.9%),
Penske Corporation (41.1%) and Penske Automotive Group (9%).

Fitch has assigned the following rating:

Penske Truck Leasing Co. LP:

--Senior unsecured notes 'BBB+'.

Existing ratings for Penske are as follows:

Penske Truck Leasing Co. LP

--Long-term Issuer Default Rating 'BBB+';

--Senior unsecured notes 'BBB+'

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Finance and Leasing Companies Criteria' (Dec. 11, 2012).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Finance and Leasing Companies Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696720

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Primary Analyst
Katherine Hughes, +1-312-368-3123
Associate Director
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Meghan Neenan, CFA, +1-212-908-9121
Senior Director
or
Committee Chairperson
Nathan Flanders, +1-212-908-0827
Managing Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com
 
Press spacebar to pause and continue. Press esc to stop.