The merger of CP with Norfolk would undermine its rating, Moody’s warns – LaPresse.ca

Moody’s said Monday it would not act immediately on this issue, since it is not 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 about 27 billion $ , would require a significant loan, said the agency, and previous mergers of the railway sector have experienced integration problems.

So far, Norfolk Southern rejected the offer Canadian Pacific, but the carrier has not yet responded to the latest changes made by the CP.