S&P rates Burlington Northern Santa Fe debentures A

S&P said it assigned its A issue-level rating to Burlington Northern Santa Fe LLC's debentures.

“Our ratings on BNSF Railway Co. and its parent, Burlington Northern Santa Fe LLC, reflect the U.S. freight railroad industry's positive risk characteristics, the company's large and strategically important rail network, the broad diversity of the commodities it transports, and its continuing yield-improvement initiatives,” S&P said in a news release.

“Price competition from other railroads and trucking companies on certain commodities and the company's capital-intensive operations, significant debt burden, and large distributions to (but also potential support from) its higher rated parent, Berkshire Hathaway Inc., somewhat offset these strengths.”

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