Moody's lifts CSX view to stable

Moody's Investors Service said it affirmed the ratings of CSX Corp. and its subsidiaries, including the senior unsecured Baa2 rating, and changed the outlook to stable from negative.

Moody's said it believes that CSX operations have hit an inflection point in the turnaround, and Moody's expects progressively more fluidity throughout the system and sustained operating improvement at current volume levels.

Recent positive trends in key service metrics of on-time arrivals/departures and terminal dwell, although recorded under the normally low volume winter months along with the benefits of a season unusually free from severe weather, have been consistent enough to indicate the broad operating programs the company put in place over the last 18 months have taken hold.

While CSX has not attained all of the operating goals that Moody's established as the basis for stabilizing the outlook, Moody's said it believes these results are affected by a different mix of business as CSX is moving more coal which travel at slower speeds than intermodal volumes.

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