Moody's: RailAmerica unchanged

Moody's Investors Service said it views RailAmerica Inc.'s recently announced share repurchase program as a negative credit event.

This program will direct capital away from debt repayment and investments in favor of increasing shareholder returns, the agency said.

However, as the program is expected to be implemented over time and to be funded with free cash flow rather than with incremental debt, it does not impact RailAmerica's corporate family rating of B1, nor its stable outlook, Moody's said.

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