S&P puts GATX on positive watch

Standard & Poor's said it placed its ratings on GATX Corp. and its major operating subsidiary GATX Financial Corp. on CreditWatch with positive implications.

Ratings placed on watch include GATX's BBB- corporate credit and unsecured debt ratings and GATX Financial's BBB- corporate credit and unsecured debt ratings, BBB secured debt rating and A-3 commercial paper rating.

The placement is based on the company's improving lease rates, the agency said. This improving operational trend and debt reduction have aided the company's financial profile.

The ratings reflect GATX's strong market position in specialty railcar leasing, fairly consistent railcar lease demand and long-term leases and contracts that produce stable cash flow, the agency said.

S&P said the ratings also incorporate the company's midsized market position within the more volatile aircraft leasing sector, several years of reduced profitability and relatively high, but declining, debt leverage.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.