S&P raises credit rating on Kansas City Southern to BB from BB-minus on stronger earnings, debt reduction efforts; rating is now one notch below investment-grade status; outlook stable

Alison Gallant

Alison Gallant

May 16, 2011 – Associated Press

NEW YORK , May 13, 2011 () – Standard & Poor's Ratings Services said Friday that it raised ratings on freight railroad Kansas City Southern because of stronger earnings and debt reduction efforts.

S&P said it expects the company to post higher earnings and cash flow this year on rising rail traffic, stable prices and more cost efficiency. It raised the company's ratings, including for corporate credit, by one notch to "BB" from "BB-minus" with a stable outlook. The rating is now one notch below investment-grade status.

Standard & Poor's credit analyst Anita Ogbara said KCS cut reported debt by $337 million to $1.6 billion over the past year, and has boosted operating income by 55 percent. She said rail volumes should continue to grow due to the gradually improving economy, particularly in Mexico.

Last month, the company reported that first-quarter profit nearly doubled as shipments rose for autos and retail goods. It earned $62.6 million as revenue increased 12 percent to $488.6 million.

The shares fell $1.03 to close Friday at $54.66.

© 2021 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.