S&P rates UTLX AA-

Standard & Poor's said it assigned an AA- rating to UTLX Co., a new entity created by Marmon Holdings Inc. consisting of Union Tank Car Co. and Marmon Crane Services Inc.

The agency also said it affirmed the AA- corporate credit rating on Union Tank Car, UTLX's major operating subsidiary. S&P also said it removed the ratings from CreditWatch with negative implications, where they were placed in March.

Marmon created UTLX as a lessor and operator of mobile cranes mainly in North America and Australia, the agency said. UTLX is providing a guaranty of Union Tank Car's debt, S&P added.

The ratings reflect UTLX's strong market position as the largest participant in the highly concentrated railroad tank car leasing industry, the agency said. Demand for the products it transports by tank cars and tank containers is relatively stable, S&P said, and its multi-year leases indicate a predictable revenue stream.

The ratings also consider the more cyclical nature of the company's tank car manufacturing and Marmon Crane Services business, the agency said.

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