S&P rates CSX notes BBB+

S&P said it assigned a BBB+ rating to CSX Corp.'s proposed senior unsecured notes due 2027.

The proceeds will be used for general corporate purposes, which may include repurchasing its common stock, funding its capital investments and working capital requirements, improving its productivity or making other cost reductions at the company's major transportation units, S&P said.

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

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