S&P assigns RailAmerica loan BB

Standard & Poor's said it assigned its BB secured debt rating and 1 recovery rating to RailAmerica Transportation Corp.'s term loan maturing in 2011, which is being increased from $313 million to $388 million.

The loan is guaranteed by parent RailAmerica Inc. (BB-/Positive).

At the same time, S&P said it affirmed its BB secured debt rating and 1 recovery rating on RailAmerica Transportation Corp.'s $90 million revolving credit facility maturing in 2010 and RailAmerica Canada Corp.'s $37 million term loan due 2011 and RaiLink Canada Ltd.'s $10 million revolving credit facility due 2010.

The agency noted ratings on RailAmerica reflect the risks and challenges associated with its active acquisition strategy and increased cost pressures, partly offset by the favorable risk characteristics of the North American freight railroad industry.

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