TEXT - S&P rates Penske Truck Leasing Co L.P.

Mon Jan 14, 2013 4:40pm EST

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Jan 14 - Standard & Poor's Ratings Services said today that it has assigned
its 'BBB-' rating to senior notes co-issued by Penske Truck Leasing Co. L.P. and
PTL Finance Corp. The company will use proceeds to repay outstanding borrowings
under the its bank revolver as well as to repay all U.S.-denominated
indebtedness under the GE Capital facility.  

Our ratings on Penske reflect its significant market position in its major 
businesses--full service truck leasing, contract maintenance, and commercial 
truck rentals. The company has contracted most of its revenues under long-term 
leases, which generate relatively stable cash flow, even during periods of 
economic weakness. Partially offsetting these strengths are its capital 
intensity, weaker margins in the logistics segment, and exposure to the 
domestic automotive sector. We view Penske's business risk profile as 
"satisfactory," its financial risk profile as "significant," and its liquidity 
as "adequate."  

The outlook is stable. Given Penske's current fleet replenishment and capital 
spending plans, we expect debt to increase in 2013, although an upgrade is 
unlikely over that period. However, if the operating environment improves, we 
could raise the ratings if funds from operations (FFO) to debt exceeds 30% on 
a sustained basis, compared with our expectations of about 20%. Alternatively, 
we could lower the ratings if credit measures fall below our expectations for 
the ratings, with FFO to debt falling below 15% on a sustained basis.

RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Methodology And Assumptions: Liquidity Descriptors For Global 
Corporate Issuers, Sept. 28, 2011
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008


RATINGS LIST 

Penske Truck Leasing Co. L.P.          
 Corporate Credit Rating             BBB-/Stable/--

New Rating

Penske Truck Leasing Co. L.P.
PTL Finance Corp.
 Senior notes                        BBB-
FILED UNDER:
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