Moody's rates CSX notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to CSX Corp.'s $500 million unsecured notes due 2010.

The outlook is stable.

"Although CSX, and the entire North American railroad sector, will likely face a difficult operating environment in 2009, Moody's believes that the company will be able to sustain credit metrics and produce free cash flow at level commensurate with its Baa3 rating," Moody's vice president David Berge said in a statement.

The agency said CSX's progress over recent years in improving service levels and achieving good pricing growth, along with a strong liquidity position, should position the company well over the near term, despite expected declines in overall volumes and uncertainty around yield.

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