CSX Corp.'s Proposed Senior Unsecured Notes Due 2049 Rated 'BBB+'

NEW YORK (S&P Global Ratings) Feb. 21, 2019--S&P Global Ratings today assigned its 'BBB+' issue-level rating to U.S. railroad CSX Corp.'s proposed senior unsecured notes due 2049. The company will use the proceeds from these notes for general corporate purposes, which may include share repurchases and capital spending. At the same time, CSX is issuing an add-on to its existing 4.25% senior unsecured notes due 2029. Our rating on those notes remains unchanged at this time. Our issuer credit rating on CSX reflects our favorable view of the North American freight railroad industry, given the limited competition from alternative modes of commercial freight transport, the formidable barriers to entry, and its moderate cyclicality. Our rating is also based on the

...NEW YORK (S&P Global Ratings) Feb. 21, 2019--S&P Global Ratings today assigned its '###+' issue-level rating to U.S. railroad CSX Corp.'s proposed senior unsecured notes due 2049. The company will use the proceeds from these notes for general corporate purposes, which may include share repurchases and capital spending. At the same time, CSX is issuing an add-on to its existing 4.25% senior unsecured notes due 2029. Our rating on those notes remains unchanged at this time. Our issuer credit rating on CSX reflects our favorable view of the North American freight railroad industry, given the limited competition from alternative modes of commercial freight transport, the formidable barriers to entry, and its moderate cyclicality. Our rating is also based on the company's strong competitive position, extensive rail network, diverse revenue streams, and strong operating efficiency. ISSUE RATINGS--SUBORDINATION RISK ANALYSIS Capital structure + CSX's capital structure consists primarily of senior...

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