Buisness Week reports that Standard and Poor has given Norfolk Soutern’s new senior unsecured debt a BBB+ rating. In the world of Standard and Poor, BBB+ is considered investment grade. S&P cited NS Corp being one of the 2 largest east coast railroads and stable pricing and freight volume as the reasons for the rating. NS Corp plans to issue 600 million USD in notes, payable in 2041.
As the economy continues to stagnate; and the spector of recession remainds in the picture; this positive rating should provide some comfort for investors; and hopefully the new capital will provide service expansion and improvement.