CSX Corp. Ratings Raised To 'BBB' From 'BBB-' On Improved Credit Measures; The Outlook Is Stable
- ID: 1718149
- April 2011
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
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Over the past year, U.S.-based CSX Corp.'s operating profitability and financial profile have improved meaningfully. Freight revenues and operating income have benefitted from rising volumes, core pricing improvement, and operating efficiency gains. For the 12 months ended March 31, 2011, CSX's credit measures strengthened, resulting in funds from operations (FFO) to total debt and total debt to capital at 35% and 51%, respectively. We are raising our ratings, including the corporate credit rating, on CSX to 'BBB' from 'BBB-'. At the same time, we are revising the outlook to stable. Given the improving operating environment, we expect increased earnings and cash flow to be deployed on working capital needs and capital expenditures. Further, we expect CSX to continue to rewarding...
Companies mentioned in this report are: CSX Corp.
Action: Outlook: Stable