Outlook on Norfolk Southern Corp Revised to Negative from Stable; Ratings Affirmed Oct 99
- ID: 1928412
- October 1999
- Region: Norfolk Islands
- Standard & Poors
NEW YORK (Standard & Poor's CreditWire) Oct. 28, 1999--Standard & Poor's today affirmed its ratings on Norfolk Southern Corp. and its subsidiaries. The outlook is revised to negative from stable. The outlook revision reflects significantly worse than expected results following the company's June 1, 1999, assumption of control of its 58% ownership of Conrail, Inc. Initial computer information system, network management, and customer interface problems created delays and congestion. The company estimates that approximately $73 million of third quarter 1999 revenue was diverted to other modes of transportation, particularly trucking. Congestion-related expenses were of a similar amount. Norfolk Southern has made progress since June 1 in correcting these operational and information technology problems. However the initial setbacks and likely gradual...
Companies mentioned in this report are: Norfolk Southern Corp.
Action: Outlook Revised
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