S&P drops Kansas City Southern

Standard & Poor's said it lowered its ratings on Kansas City Southern, including lowering the long-term corporate credit rating to B from B+.

All ratings on Kansas City Southern and its subsidiaries have been placed on Creditwatch with negative implications, the agency said.

"The rating action reflects its concerns regarding the company's liquidity position, and deteriorating earnings and cash flow," said credit analyst Anita Ogbara.

"Although we expect the company to reduce its capital spending compared with 2008 levels, its liquidity position remains constrained due to the timing of its expansion projects relative to cash flow."

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