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TEXT-S&P on North American transportation sector outlook

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Oct 11 - A Standard & Poor's Ratings Services report published today looksat business conditions and rating quality for North American transportationcompanies for the remainder of 2012 and into 2013. The report, titled "NorthAmerica's Transportation Industry Maintains A Stable Outlook Despite SlowingU.S. And Global Economies," reflects Standard & Poor's views on the sector as awhole, including:

-- Our 2012 and 2013 base-case sector scenario forecasts, which we baseon key economic indicators for the sector and the broader economy. Ourbaseline 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, whichinclude fuel prices and the balance of supply and demand in each subsector; and

-- Our views on recent and projected access to the capital markets, alongwith 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 facesmajor downside risks this year and next from the slowing U.S. and globaleconomies, Europe's sovereign and financial sector debt problems, andpotential tax increases and spending cuts in the U.S. at the start of2013--the 'fiscal cliff'."

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

. If you are not a RatingsDirectsubscriber, you may purchase a copy of the report by calling (1) 212-438-7280or sending an e-mail to research_request@standardandpoors.com. Ratingsinformation can also be found on Standard & Poor's public Web site by usingthe Ratings search box located in the left column at

.

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

(New York Ratings Team)

((e-mail: pam.niimi@thomsonreuters.com; Reuters Messaging:pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;))