S&P assigns BBB+ to CSX notes

Standard & Poor's said it assigned its BBB+ issue-level rating to CSX Corp.'s proposed senior unsecured notes due 2050.

Proceeds will be used for general corporate purposes, which may include share repurchases, capital expenditures, working capital requirements, productivity improvements and other cost reductions at CSX's major transportation units.

S&P said the rating reflects the U.S. freight railroad industry's favorable risk characteristics as well as the company's large and strategically important rail network and solid cash flow generation. Price competition from other railroads and trucking companies on selected commodities and high capital spending requirements, which is typical of the industry, somewhat offset these strengths.

The agency characterizes CSX’s business risk as "strong," its financial risk as "intermediate" and its liquidity as "adequate," based on the criteria.

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