S&P: Burlington Northern debt BBB+

Standard & Poor's said it assigned its BBB+ ratings to Burlington Northern Santa Fe LLC's $800 million senior unsecured debentures due 2023 and $700 million senior unsecured debentures due 2043.

Burlington Northern will use the proceeds from the debt issuance for general corporate purposes, including working capital, capital expenditures, outstanding debt repayments and distributions to its parent, Berkshire Hathaway Inc.

S&P said the ratings on Burlington Northern reflect the company's strong competitive position in the low-risk U.S. freight railroad industry, solid earnings, and cash flow generation. Price competition from other railroads and trucking companies, as well as the capital intensity of the industry, partially offsets these strengths.

The ratings also incorporate a one-notch credit for potential support from Burlington Northern's higher-rated parent, Berkshire, although Berkshire does not guarantee Burlington Northern's debt, the agency said.

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