Fitch affirms GATX

Fitch Ratings said it affirmed the long-term issuer default rating of GATX Corp. at BBB and the short-term issuer default rating at F2.

The outlook is stable.

The affirmation reflects the company's leading market position and expertise in the railcar leasing sector, relatively stable financial performance throughout the downturn, solid liquidity and improved funding flexibility, Fitch said.

Given that freight demand is closely correlated to GDP growth, weak economic and market conditions negatively impacted lease pricing and railcar demand over the past few years, the agency said.

However, the company's efforts to extend the tenor of railcar leases during the years of peak market demand and pricing, combined with the relatively solid underlying credit quality of the customer base, have helped to maintain fleet utilization and generate positive earnings performance and cash flows through the difficult economic conditions, Fitch said.

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