S&P rates Kansas City loan BB+

Standard & Poor's said it revised the outlook on Kansas City Southern to positive from stable.

The agency also said it affirmed its BB corporate credit rating.

S&P also said it assigned a BB+ rating to Kansas City Southern de Mexico SA de CV's proposed $200 million revolving credit facility with a 2 recovery rating, indicating 70% to 90% expected recovery in a default.

The outlook revision reflects improving volumes in Mexico, growth across several major commodity types, stronger operating performance and strengthening credit metrics, S&P said.

The ratings reflect a financial risk profile that, while improving, remains somewhat weaker than those of its peers, the agency said

The ratings also consider the company's substantial capital spending requirements and meaningful exposure to cyclical end markets, S&P said.

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