Fitch rates CSX notes BBB-

Fitch Ratings said it assigned a BBB- rating to CSX Corp.'s new senior unsecured notes, adding that about $400 million in proceeds from the new seven-year and 30-year notes will be used to repay CSX's senior unsecured notes due 2008.

The agency said that the remainder will be used for general corporate purposes, including common stock repurchases.

The issuer default rating for CSX is BBB- and the outlook is stable.

Fitch added that CSX's ratings reflect continuing improvement in the railroad's operating performance and ongoing free cash flow strength, balanced against expectations for higher leverage as the company borrows to fund share repurchases.

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