S&P rates GATX notes BBB

S&P said it assigned a BBB rating to GATX Corp.’s $150 million 5.625% senior unsecured notes due 2066.

The proceeds will be used for debt reduction and general corporate purposes, including working capital and capital expenditures, S&P said.

The ratings reflect the company’s position as a major North American tank car lessor, a business that benefits from relatively consistent demand and long-term leases and contracts that produce relatively stable cash flow, the agency said.

The ratings also consider the company's fairly high debt leverage relative to its peers and the less-predictable revenue and earnings from its American Steamship Co. segment, S&P said.

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