Moody's: GATX outlook negative

Moody's Investors Service said it revised the outlook on GATX Corp. to negative from stable and affirmed its Baa1 long-term and Prime-2 short-term ratings.

The agency said the outlook change reflects the potential that the weaker operating environment for the firm's core railcar leasing business could pressure operating results beyond levels characteristic of past down cycles. Moody's also expects weaker results from GATX's specialty finance and Great Lakes shipping businesses.

GATX's ratings continue to be supported by its solid franchise strength in full-service railcar leasing - particularly in tank cars, which have less volatile usage patterns than many other railcar types - and its good liquidity profile, which includes strong operating cash flow, manageable debt maturities and long-term committed backup facilities, Moody's said.

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