...CSX Corporation's ratings reflect its strong business profile, supported by its well-established position in the two-firm eastern U.S. rail market afforded by its large rail network and customer- centric infrastructure and services. Regional industrial development trends and truck-to-rail shipment conversions represent growth opportunities, particularly since the company's precision-scheduled railroading principles support relatively strong operating and service metrics. CSX's financial flexibility is a relative strength due to its highly profitable operations, resilient cash flows, flexible share repurchase policy, and dividend distributions that are relatively moderate compared to peers. Its end-markets exhibit cyclicality, although Fitch Ratings expects volumes to be resilient and reflect U.S. economic conditions. Management's financial policies have maintained leverage in the mid-to-high 2.0x, which is consistent with 'A-' rating tolerances for class 1 rail operators....
