Improved traffic volumes across most commodity types, favorable pricing, good network operating efficiency, and benefits of operating leverage drove positive first-quarter 2010 performance for the large U.S. railroads. On April 19, 2010, Standard & Poor's Ratings Services revised its outlook on our ratings to positive from stable on two U.S. railroads, CSX Corp. (BBB-/Positive/--) and Union Pacific Corp. (BBB/Positive/A-2). Also of note, earlier this year we raised our ratings on Burlington Northern Santa Fe LLC (BNSF; BBB+/Stable/A-2) following the completion of Berkshire Hathaway Inc.'s acquisition of the railroad. Berkshire Hathaway does not guarantee Burlington Northern Santa Fe's debt, but we give a one-notch credit for potential support from the more highly rated parent. In this Credit FAQ, we will address...
Companies mentioned in this report are: CSX Corp.,Union Pacific Corp.,Norfolk Southern Corp.,Burlington Northern Santa Fe LLC
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Research Type: Commentary
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