CSX Corp.'s Proposed Senior Unsecured Notes Assigned 'BBB+' Issue Rating

NEW YORK (Standard&Poor's) April 16, 2015--Standard&Poor's Ratings Services said today that it has assigned its 'BBB+' issue-level rating to Jacksonville, Fla.-based CSX Corp.'s proposed senior unsecured notes due 2050. CSX will use the proceeds from the notes for general corporate purposes, which may include share repurchases, capital expenditures, working capital requirements, productivity improvements, and other cost reductions at CSX's major transportation units. Our rating on CSX reflects the U.S. freight railroad industry's favorable risk characteristics as well as the company's large and strategically important rail network and solid cash flow generation. Price competition from other railroads and trucking companies on selected commodities and high capital spending requirements, which is typical of the industry, somewhat offset these

...NEW YORK (Standard & Poor's) April 16, 2015--Standard & Poor's Ratings Services said today that it has assigned its '###+' issue-level rating to Jacksonville, Fla.-based CSX Corp.'s proposed senior unsecured notes due 2050. CSX will use the proceeds from the notes for general corporate purposes, which may include share repurchases, capital expenditures, working capital requirements, productivity improvements, and other cost reductions at CSX's major transportation units. Our rating on CSX reflects the U.S. freight railroad industry's favorable risk characteristics as well as the company's large and strategically important rail network and solid cash flow generation. Price competition from other railroads and trucking companies on selected commodities and high capital spending requirements, which is typical of the industry, somewhat offset these strengths. We characterize the company's business risk as "strong," its financial risk as "intermediate," and its liquidity as "adequate," based...

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