The negative ratings outlook for Norfolk Southern Corp. and its subsidiaries reflects concerns that a slowing economy could stall even gradual improvements in the credit profile despite solid operational metrics and measures taken to improve liquidity, including a significant reduction in the dividend. For 2000, credit measures remained weak for the rating, with lease-adjusted EBITDA coverage around 2.6 times and funds flow to debt under 10%. Improvements are still anticipated in 2001, but are vulnerable if the economy weakens more than expected. Norfolk Southern Corp.'s ratings reflect a favorable commodity mix and consistently strong historical operating performance, offset by a significant debt burden (around $8 billion) from the 1997 purchase of 58% of Conrail Inc. and problems, which are now
