Research Update: Norfolk Southern Corp. 'BBB+' Rating Affirmed, Commercial Paper Assigned 'A-2' Rating; Outlook Stable

Norfolk Southern Corp. has established a new $800 million commercial paper (CP) program. S&P Global Ratings today assigned its 'A-2' short-term issue-level rating to Norfolk's CP program. We affirmed all of our ratings on the company, including our 'BBB+' issuer credit rating, as operating performance continues in line with our expectations. Norfolk's $800 million revolver due in 2029 provides a backstop for the CP while its liquidity, which we view as adequate, provides additional support. The stable reflects our expectations for Norfolk's credit measures to improve in 2024 and thereafter as the company recovers from the impact of the derailment in East Palestine, Ohio, related expenses moderate, freight demand improves, and it pauses share repurchases. Norfolk's derailment costs will be

...- Norfolk Southern Corp. has established a new $800 million commercial paper (CP) program. - S&P Global Ratings today assigned its 'A-2' short-term issue-level rating to Norfolk's CP program. - We affirmed all of our ratings on the company, including our '###+' issuer credit rating, as operating performance continues in line with our expectations. - Norfolk's $800 million revolver due in 2029 provides a backstop for the CP while its liquidity, which we view as adequate, provides additional support. - The stable reflects our expectations for Norfolk's credit measures to improve in 2024 and thereafter as the company recovers from the impact of the derailment in East Palestine, Ohio, related expenses moderate, freight demand improves, and it pauses share repurchases....

Research Update