Moody's rates Kansas City Southern notes B2

Moody's Investors Service said it has assigned a B2 rating to Kansas City Southern Railway Co.'s proposed senior unsecured notes due 2013.

The agency said that parent company the Kansas City Southern's corporate family rating was affirmed at B1. The outlook is stable.

On Dec. 15, the companies announced plans to commence an offering of $175 million of senior notes due 2013, the agency said, adding that the company intends to use the proceeds from these notes to repurchase $200 million aggregate principal amount of its 7½% senior notes due 2009 and to pay the fees and expenses associated with such repurchase.

According to Moody's, Kansas City Southern's B1 rating reflects on-going improvement in the company's railroad operations, stemming largely from high, but appropriate levels of investment in both its equipment and infrastructure over the past several years.

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