S&P assigns RailAmerica B+, notes BB-

Standard & Poor's said it assigned its B+ corporate credit rating to RailAmerica Inc.

The outlook is stable.

At the same time, the agency said it assigned a BB- rating to the company's $700 million seven-year senior secured notes due 2017, as well as a 2 recovery rating.

The company will use the proceeds to refinance existing term loans, the agency added.

According to S&P, the ratings on RailAmerica reflect the company's aggressive financial profile and near-term pressures on rail traffic caused by the U.S. recession.

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