Fitch: CSX unaffected

Fitch Ratings said it maintained CSX Corp.'s issuer default rating, senior unsecured rating and unsecured bank facility at BBB and short-term rating at F2 following the company's announcement that its board of directors has authorized the repurchase of up to $2 billion in common stock through the end of 2008.

The outlook is stable.

With pricing increases driving growth in operating cash flow and relatively stable capital spending needs, CSX's share repurchase program will provide the company with the flexibility to return a significant portion of its free cash flow to shareholders, the agency said.

Despite the relatively large size of the program, Fitch expects CSX's credit profile to remain relatively stable over the next two years. Free cash flow is expected to continue growing, and liquidity should remain solid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.