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Burlington Northern Santa Fe LLC Feb 10
Standard & Poors, Feb 2010
Abstract
Positive risk characteristics of the U.S. freight railroad industry; Large and strategically important rail network; Continuing yield-improvement initiatives; Efficient operations; and One-notch credit for potential support from the more highly rated parent, Berkshire Hathaway Inc. Significant debt levels; Capital-intensive operations; and Price competition from trucking companies and other railroads in certain commodity areas and trucking companies (to a lesser extent). The ratings on Fort Worth, Texas-based Burlington Northern Santa Fe Corp. (BNSF) reflect the company's strong competitive position in the low-risk U.S. freight railroad industry and solid earnings and cash flow generation, as well as a one-notch credit for potential support from parent Berkshire Hathaway Inc. (which acquired BNSF on Feb. 12, 2010). The ratings do not incorporate an explicit...
Companies mentioned in this report are: Burlington Northern Santa Fe LLC,Atchison Topeka & Santa Fe Railway Co.,Burlington Northern Inc.,BNSF Railway Co.,Northern Pacific Railway Co.
Action: Review
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
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