S&P rates CSX notes BBB+

S&P said it assigned its BBB+ issue-level rating to CSX Corp.'s proposed senior notes due 2028, 2048 and 2068.

The company will use the proceeds from these notes for general corporate purposes, which may include share repurchases.

“We rate the company's unsecured debt BBB+, which is the same as our corporate credit rating, because no significant elements of subordination risk are present in its capital structure,” the agency said in a news release.

S&P said the corporate credit rating on CSX reflects a favorable view of the North American freight railroad industry, given the limited competition from alternative modes of commercial freight transport, the formidable barriers to entry and its moderate cyclicality.

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