S&P rates CSX notes BBB+

Standard & Poor’s said it assigned a BBB+ rating to CSX Corp.’s proposed senior unsecured notes.

The proceeds will be used for general corporate purposes, which may include share repurchases, capital expenditures, working capital requirements, acquisitions, productivity improvements and other cost-reduction initiatives at its major transportation units.

The ratings reflect the U.S. freight railroad industry’s favorable risk characteristics, S&P said, 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 the company’s high capital-spending requirements somewhat offset these strengths, the agency said.

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