Moody’s gives Burlington Northern notes A3

Moody's Investors Service said it assigned an A3 rating to Burlington Northern Santa Fe, LLC's new senior unsecured notes.

The outlook is stable.

Proceeds are expected to be used for general corporate purposes, including to help fund the company's $6 billion capital commitments, $366 million of debt maturities and distributions to its indirect shareholder, Berkshire Hathaway Inc.

Moody’s said the A3 rating considers the company's position as one of two major freight railroads in the western U.S., which makes the company an integral part of the nation's transportation infrastructure. The rating is also supported by the company's freight diversity, relative stability in operating profits and ability to generate robust cash flows that enable the company to make ongoing substantial investments in its infrastructure, equipment and technology.

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