S&P rates Burlington Northern notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Burlington Northern Santa Fe LLC's $750 million senior unsecured debentures due 2021 and 2041.

The proceeds will be used for general corporate purposes, including working capital, capital expenditures and the repayment of outstanding indebtedness.

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

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

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