S&P assigns GATX notes BBB+

Standard & Poor's said it assigned its BBB+ rating to GATX Corp.'s senior unsecured notes.

The company will use the proceeds for several purposes: to repay commercial paper; to repay a portion or all of the $230 million senior notes which mature April 15, 2010; to redeem a portion or all of the $42 million convertible notes due 2023 that were called for redemption Jan. 29, 2010; and for general corporate purposes, the agency noted.

"The ratings on GATX reflect a strong market position in its major business, tank car leasing; relatively consistent tank car lease demand; even in periods of economic weakness; and long-term leases and contracts that produce relatively stable cash flow," said S&P credit analyst Roman Szuper.

"The ratings also incorporate the company's high debt leverage relative to its peers, and the less-predictable revenues and earnings that its Specialty segment generates," he continued.

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