S&P rates Burlington Northern Santa Fe notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Burlington Northern Santa Fe LLC's $1.25 billion senior unsecured debentures due 2022 and 2042.

The proceeds will be used for general corporate purposes including working capital, capital expenditures, the repayment of outstanding debt and distributions.

The ratings reflect the company's strong competitive position in the low-risk U.S. freight railroad industry, solid earnings and cash flow generation, S&P said.

Price competition from other railroads and trucking companies, as well as the capital intensity of the industry, partially offset these strengths, the agency said.

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