S&P rates CSX notes BBB-

Standard & Poor's said it assigned a BBB- rating on CSX Corp.'s $800 million senior unsecured notes due 2020 and 2041.

The proceeds will be used to repay debt, repurchases of common stock, capital expenditures, working capital requirements and improvements in productivity and other cost-reduction plans, S&P said.

The ratings reflect the company's strong competitive position as one of the two largest eastern U.S. freight railroads and the favorable characteristics of the North American freight railroad industry, which includes limited cyclicality, high barriers to entry and access to low-cost equipment financing, S&P said.

Price competition from other railroad and trucking companies and the capital intensity of the industry somewhat offset these strengths, the agency said.

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