TEXT - Fitch rates Penske Truck Leasing senior unsecured notes

Thu Jan 17, 2013 11:14am EST

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Jan 17 - 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.
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