CSX Corp.'s Proposed Senior Unsecured Notes Due 2027 Rated 'BBB+'

NEW YORK (S&P Global Ratings) April 26, 2017--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Jacksonville, Fla.-based CSX Corp.'s proposed senior unsecured notes due 2027. CSX will use the proceeds from these notes for general corporate purposes, which may include repurchasing its common stock, funding its capital investments and working capital requirements, improving its productivity, or making other cost reductions at the company'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 the company's high capital spending requirements, which are typical of the

...NEW YORK (S&P Global Ratings) April 26, 2017--S&P Global Ratings today assigned its '###+' issue-level rating to Jacksonville, Fla.-based CSX Corp.'s proposed senior unsecured notes due 2027. CSX will use the proceeds from these notes for general corporate purposes, which may include repurchasing its common stock, funding its capital investments and working capital requirements, improving its productivity, or making other cost reductions at the company'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 the company's high capital spending requirements, which are typical of the industry, somewhat offset these strengths. We assess the company's business risk profile as strong, its financial risk profile as intermediate, and its...

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