- ID: 1718349
- 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: Full Analysis
Favorable risk characteristics of the North American railroad industry; Large and strategically located rail network, with a diversified traffic mix and customer base; and Improved operating performance over the past few years, and the potential for further improvement. Capital-intensive business; and Competition from trucking companies, barges, and other railroads in certain areas. Our ratings on Jacksonville, Fla.-based CSX Corp. reflect the company's strong competitive position as one of the two large eastern U.S. freight railroads. The favorable characteristics of the North American freight railroad industry include limited cyclicality, high barriers to entry, and access to low-cost equipment financing. Price competition from other railroads and trucking companies, as well as the capital intensity of the industry, offset these strengths. We believe...
Companies mentioned in this report are: CSX Corp.,CSX Transportation Inc.