S&P rates CSX notes BBB

Standard & Poor's said that it assigned a BBB issue-level rating to CSX Corp.'s $350 million of senior notes due 2021.

CSX will use proceeds from the debt issuance for repayment of outstanding debt, repurchases of common stock, capital expenditures, working capital requirements and general corporate purposes.

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

Price competition from other railroads and trucking companies, as well as the capital intensity of the industry, offset the strengths, the agency added.

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