S&P rates CSX notes BBB-

Standard & Poor's said it assigned a BBB- rating to CSX Corp.'s (BBB-/stable/A-3) $400 million 5¾% notes due 2013 and $600 million 6¼% notes due 2018. S&P also affirmed all ratings on CSX Corp. and its subsidiary CSX Transportation Inc. (BBB-/stable).

Proceeds are expected to be used to fund the company's share repurchase program.

S&P said it lowered the issuer's ratings on May 8, reflecting the company's plans to use debt to finance $1 billion of additional share buybacks. The increase was on top of an existing $2 billion program and indicated a somewhat more aggressive financial policy, the agency said.

Ratings reflect the company's strong competitive position, the favorable characteristics of the North American freight railroad industry, access to low-cost equipment financing and satisfactory financial risk profile, S&P said.

The ratings also reflect price competition from other railroads and trucking companies, the capital intensity of the industry and the somewhat more aggressive financial policy, the agency said.

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