Norfolk Southern Corp.'s Proposed Senior Unsecured Notes Rated 'BBB+'

NEW YORK (S&P Global Ratings) Feb. 13, 2018--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Norfolk Southern Corp.'s proposed senior unsecured notes. The company will use the proceeds from these notes to repay its debt and for general corporate purposes. Our corporate credit rating on Norfolk Southern 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 Norfolk Southern's capital structure consists primarily of senior unsecured debt issued at the

...NEW YORK (S&P Global Ratings) Feb. 13, 2018--S&P Global Ratings today assigned its '###+' issue-level rating to Norfolk Southern Corp.'s proposed senior unsecured notes. The company will use the proceeds from these notes to repay its debt and for general corporate purposes. Our corporate credit rating on Norfolk Southern 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 + Norfolk Southern's capital structure consists primarily of senior unsecured debt issued at the parent level and a modest amount of debt issued by its subsidiary Norfolk Southern Railway Co. Analytical conclusions + We rate the company's...

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