OREANDA-NEWS. April 13, 2015. Fitch Ratings has assigned an initial Long-term Issuer Default Rating (IDR) of 'BBB+' to Penske Truck Leasing Canada Inc. (PTL Canada) and a 'BBB+' rating to the company's senior unsecured debt. The Rating Outlook is Stable.

KEY RATING DRIVERS - IDR and Unsecured Debt
The IDR is equalized with PTL's IDR and reflects the shared branding, senior notes guarantee provided by PTL and PTL's ownership stake of 100%. The unsecured debt rating is equalized with PTL Canada's IDR and reflects that the notes rank pari-passu with PTL's existing unsecured debt in terms of payment priority.

RATING SENSITIVITIES - IDR and Unsecured Debt
The ratings assigned to PTL Canada's IDR and unsecured debt are equalized with PTL's IDR and would therefore be expected to change as a result of a change in PTL's IDR. Notes issued by PTL Canada are guaranteed by PTL.

The IDR could be adversely impacted by an increase in leverage resulting from a decline in operating performance beyond Fitch's expectations. Additionally, deterioration in the firm's competitive position, weakening asset quality, an inability to realize residual values on used vehicles, a material increase in non-earning vehicles, and/or a decline in liquidity could result in negative rating action.

Fitch believes positive rating action is limited in the medium term, but over the longer term positive rating momentum for PTL's IDR could result from demonstrated access to the unsecured markets through market cycles, increased funding diversity, and reduced leverage.

PTL Canada is a wholly-owned subsidiary of PTL. Established in 1988 and headquartered in Reading, PA, PTL is a leading provider of full-service truck leasing, truck rental, and contract maintenance and logistics services. PTL is a partnership between Penske Corporation (41.1%), GECC (29.9%), Mitsui & Co (20%), and Penske Automotive Group (9%).

Fitch has assigned the following ratings:

Penske Truck Leasing Canada Inc.
--Long-term IDR 'BBB+';
--Senior unsecured debt 'BBB+'.

The Rating Outlook is Stable.

Contact:

Primary Analyst
Meghan Neenan, CFA
Senior Director
+1-212-908-9121
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004

Secondary Analyst
Tyra Junaid
Director
+1-212-908-0291

Committee Chairperson
Christopher Wolfe
Managing Director
+1-212-908-0771


Media Relations: Alyssa Castelli, New York, Tel: +1 (212) 908 0540, Email: alyssa.castelli@fitchratings.com; Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com.

Additional information is available on 'www.fitchratings.com'.

Applicable Criteria and Related Research:
--'Global Non-Bank Financial Institutions Rating Criteria' (March 20, 2015);
--'Fitch Affirms Truck Lessors' Ratings Following Peer Review; Outlooks Stable' (Oct. 14, 2014);
--'2015 Outlook: Finance and Leasing Companies' (Nov. 11, 2014);
--'Large Equipment Leasing: Rating Attribute Analysis (Comparing Aircraft, Truck, Railcar and Container Leasing Sectors)' (Sept. 30, 2014).