Moody's affirms CSX

Moody's Investors Service said it affirmed CSX Corp.'s senior unsecured debt rating at Baa2 and short-term rating at Prime-2 following the announcement of CSX's share repurchase program, which could total $2 billion over the next two years .

The agency said it anticipates that share repurchases will be managed to preserve key financial metrics consistent with the current Baa2 senior unsecured rating and would be restrained should growth in profits and free cash flow not materialize as expected, particularly in the latter half of 2007.

To preserve the ratings and the stable outlook, CSX would need to sustain a debt-to-EBITDA of around 3x and an EBIT-to-interest ratio of roughly 4x, Moody's said.

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