S&P rates Flexi-Van notes BB-

Standard & Poor's said it assigned a long-term BB- corporate credit rating to Flexi-Van Leasing Inc., along with a BB- rating to its proposed $250 million senior notes with a 4 recovery rating, indicating average 30% to 50% expected default recovery.

The outlook is stable.

The ratings reflect the company's aggressive financial policies, including large advances and material debt-financed dividend payments to its owner, David Murdock, said Funmi Afonja, an S&P analyst.

Positive credit factors include Flexi-Van's substantial No. 2 market position in chassis leasing and an industry with a limited number of participants, Afonja said.

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