S&P ups TMM

Standard & Poor's said it raised its corporate credit rating on Grupo TMM SA de CV to B- from CCC.

The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. The outlook is positive, the agency said.

S&P noted the upgrade reflects TMM's use of cash proceeds from Transportacion Ferroviaria Mexicana's (TFM, BB-/negative) acquisition by Kansas City Southern (KCS, BB-/stable) to reduce debt.

The rating on TMM reflects its weak cash flow generation and the inherent risks associated with the capital-intensive and competitive shipping industry, the agency said, noting these factors are partially offset by its position as the largest integrated logistics company in Mexico and an improved balance sheet.

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