S&P upgrades RailAmerica

Standard & Poor's said it raised RailAmerica Inc.'s corporate credit rating to BB- from B+.

The outlook is stable.

The upgrade reflects RailAmerica's improved cash flow adequacy and asset-protection measures resulting from debt reduction and improved operating profitability, S&P said.

Over the past year, credit metrics have improved due to earnings improvement and debt reduction following the company's optional redemption of $74 million in senior secured notes in 2010, the agency said.

The ratings also consider the company's aggressive financial risk profile, capital intensity and acquisitive growth strategy, S&P said.

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