Fitch upgrades TTX

Fitch Ratings said it upgraded TTX Co.'s long-term issuer default rating and senior unsecured debt rating to A from A-.

The outlook is stable.

The upgrades reflect sustained improvement in TTX's leverage and coverage metrics, along with its enhanced and more diversified funding profile, Fitch said.

The upgrades also consider the company's strong asset quality, given negligible impairments over the past five years and minimal exposure to residual value risk, the agency said.

TTX's ratings continue to be supported by unique competitive advantages related to its ownership structure and regulatory exemption status, strong liquidity given stable operating cash flow generation and consistent operating performance through various cycles, Fitch said.

Rating constraints include TTX's monoline business strategy, cyclicality of the North American railroad industry, customer and supplier concentrations and the reliance on regulatory exemption to maximize the business model, the agency said.

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