Fitch affirms CSX

Fitch Ratings said it affirmed CSX Corp.'s long-term issuer default rating, senior unsecured rating and unsecured bank facility rating at BBB-.

The outlook is stable.

The agency said CSX's ratings reflect the company's significant financial flexibility and liquidity position despite expected near-term pressure on free cash flow resulting from the recession-induced decline in transportation demand. Fitch also expects that liquidity should remain relatively strong because the company has pre-funded its near-term debt maturities and temporarily curtailed activity in its share- repurchase program.

The rate of decline in CSX's volumes accelerated rapidly in the fourth quarter of 2008 as industrial production and consumer spending declined dramatically, Fitch said, and this weak volume performance has carried over into 2009, with volumes in the first quarter down 17% versus the year-ago period. An unexpected further steep decline in volumes could lead to a negative outlook.

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