S&P upgrades Burlington Northern

S&P said it raised the corporate credit rating on Burlington Northern Santa Fe LLC to A+ from A, along with all of the issue-level ratings by one notch.

The outlook is stable.

The upgrades are based on a revised assessment of the company's financial policy, which is considered neutral compared with the previous assessment of negative.

In 2017, Burlington Northern Santa Fe paid a $4.6 billion dividend to its parent Berkshire Hathaway Inc., an increase from the $2.5 billion paid in 2016, S&P explained.

The larger dividend was financed through stronger earnings and cash flow due to improved operating performance, plus some increased debt, the agency said.

The stable outlook reflects an expectation that revenues and earnings will improve over the next 18 to 24 months as freight volumes and pricing continue the recovery trend that began in 2017, S&P said.

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