- Canadian Pacific Railway's (CP +0.8%) debt load ratio would rise to 4X earnings if it snaps up Norfolk Southern (NSC +0.4%), according to analysis from Moody's.
- The company is already above the industry average of 1.9 with a 2.4 debt-to-earnings ratio.
- The huge debt load could make it trickier for Canadian Pacific to keep its investment grade credit rating.
- Speculation of a major Canadian Pacific Railway acquisition have been lingering for more than a year.
- Previously: DJ: Canadian Pacific Railway proposes merger to Norfolk Southern (Nov. 13 2015)