Photo Bloomberg.
The rating agency Moody’s said Monday that Canadian railways Pacific and Norfolk Southern could see their credit score lowered if the two companies went ahead with a merger.
Moody’s said Monday it would not act immediately on this issue, since it is not the clear lap that Norfolk Southern will accept the merger of CP offer.
But if the probability of a marriage between the two carriers were to increase, Moody’s would consider reducing their credit scores.
Canadian Pacific grouping Project Funding (TSX: CP), valued at approximately $ 27 billion, would require a significant loan, said the agency, and previous mergers of the railway sector experienced integration problems.
So far, Norfolk Southern has rejected the offer of Canadian Pacific, but the carrier has not yet responded to the latest changes made by the CP.
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