S&P: Kansas City loan BBB-

Standard & Poor's said it assigned a BBB- rating to Kansas City Southern Railway Co.'s proposed $500 million senior secured credit facility, which is comprised of a new $200 million revolving credit facility due in 2016 and a $300 million term loan A due 2017.

The rating on the credit facility is two notches above the BB corporate credit ratings on its parent, Kansas City Southern.

The proceeds will be used to refinance existing credit facilities totaling $307 million and pay transaction fees.

The ratings reflect a financial risk profile that, while improving, remains somewhat weaker than those of its class 1 peers, S&P said.

The favorable characteristics of the U.S. freight railroad industry and the company's strategically located rail network partly offset these risks, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.