TEXT-S&P on North American transportation sector outlook

Oct 11 - A Standard & Poor's Ratings Services report published today looks at business conditions and rating quality for North American transportation companies for the remainder of 2012 and into 2013. The report, titled "North America's Transportation Industry Maintains A Stable Outlook Despite Slowing U.S. And Global Economies," reflects Standard & Poor's views on the sector as a whole, including:

-- Our 2012 and 2013 base-case sector scenario forecasts, which we base on key economic indicators for the sector and the broader economy. Our baseline scenario forecast informs all areas of our credit analyses;

-- Our downside and upside scenarios for the sector;

-- Our view of the sector's business and financial risk indicators, which include fuel prices and the balance of supply and demand in each subsector; and

-- Our views on recent and projected access to the capital markets, along with any potential liquidity constraints some subsectors could face.

"The North American transportation sector enjoys a broadly stable outlook," said Standard & Poor's credit analyst Philip Baggaley. "However, it faces major downside risks this year and next from the slowing U.S. and global economies, Europe's sovereign and financial sector debt problems, and potential tax increases and spending cuts in the U.S. at the start of 2013--the 'fiscal cliff'."

The report is available to subscribers of RatingsDirect on the Global Credit Portal at

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Members of the media may request a copy of this report by contacting the media representative provided.

(New York Ratings Team)

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