Fitch Rates Penske Truck Leasing's $1.75B Senior Notes 'BBB+'

Fitch Ratings has assigned a 'BBB+' rating to Penske Truck Leasing Co. LP's (PTL) $1.75 billion senior unsecured notes. The notes are divided as follows:

--$875 million 3.125% notes due May 11, 2015;

--$875 million 3.75% notes due May 11, 2017.

Proceeds will be used to repay borrowings on the General Electric Capital Corporation facility (GECC).

Fitch recently assigned a 'BBB+' long-term IDR to PTL, which includes a $700 million equity injection from the general and limited partners. The equity injection reduced leverage (defined as debt/equity) from 6.5 times (x) at Dec. 31 2011 to a range of 3.0x to 3.5x on a proforma basis. The ratings also reflect PTL's established market position in the truck leasing business, experienced management team, strong asset quality, and relatively consistent operating performance through various economic cycles.

Additional information on Fitch's rating rationale and sensitivities is available in the April 26 press release, 'Fitch Expects to Assign an IDR of 'BBB+' to Penske Truck Leasing Co. LP; Outlook Stable' and the May 1 press release, 'Fitch Assigns BBB+' IDR to Penske Truck Leasing Co. LP; Outlook Stable'.

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%). Ownership interests are expected to be maintained at current percentages after the $700 million equity injection.

Fitch currently rates PTL as follows:

Penske Truck Leasing Co. LP

--Long-term IDR '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.

Fitch has done a Rating Assessment Service for Penske Truck Leasing Co. L.P.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16. 2011);

--'Finance and Leasing Companies Criteria' (Dec. 12, 2011);

--'Fitch Rates Penske Truck Leasing Cp. LP's IDR 'BBB+'; Outlook Stable'(May 01, 2012);

--'Fitch Assigns BBB+' IDR to Penske Truck Leasing Co. LP; Outlook Stable' (May 01, 2012).

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