S&P rates Burlington Northern Santa Fe notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Burlington Northern Santa Fe LLC's (BBB+/stable/A-2) $250 million senior unsecured debentures due 2020 and $500 million senior unsecured debentures due 2040.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures and the repayment of outstanding debt.

Ratings reflect the company's strong competitive position in the low-risk U.S. freight railroad industry, solid earnings and cash flow generation, the agency said.

Price competition from other railroads and trucking companies, and the capital intensity of the industry, partially offset these strengths, the agency noted.

Ratings also incorporate a one-notch credit for potential support from its more highly rated parent Berkshire Hathaway Inc., which does not guarantee the issuer's debt, according to the agency.

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