S&P affirms CSX

Standard & Poor's said it affirmed its ratings, including the BBB- corporate credit rating, on CSX Corp. (BBB-/stable) and its subsidiaries.

The agency said that the affirmation follows the company's announcement that it plans to repurchase $3 billion of its shares by the end of 2009, representing an additional $2.4 billion relative to previous plans.

The outlook is stable.

According to S&P, ratings on CSX reflect its strong competitive position as one of the two large eastern U.S. freight railroads, the favorable characteristics of the North American freight railroad industry, which include limited cyclicality, high barriers to entry and access to low-cost equipment financing and its satisfactory financial risk profile.

Offsetting these strengths, to some extent, is price competition from other railroads and trucking companies, the capital intensity of the industry and management's adoption of a more aggressive financial policy over the past year, the agency noted.

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