S&P rates Burlington Northern notes BBB

Standard & Poor's said it assigned a BBB rating to Burlington Northern Santa Fe Corp.'s (BBB/stable/A-2) $500 million 7% notes offering due 2014.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures, stock repurchases and the repayment of commercial paper, the agency said.

"Ratings on BNSF reflect the company's strong competitive position in the low-risk U.S. freight railroad industry and a generally favorable operating outlook," S&P analyst Lisa Jenkins said in a statement.

"Offsetting these strengths, to some extent, is price competition from other railroads and trucking companies, the capital intensity of the industry, and a moderately aggressive financial policy."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.