Fitch affirms Kansas City Southern

Fitch Ratings said it affirmed the BBB ratings for Kansas City Southern (KCS) and its primary operating subsidiaries, Kansas City Southern Railway Co. and Kansas City Southern de Mexico SA de CV.

The outlooks are stable.

The short-term and commercial paper ratings were affirmed at F3.

Fitch said the affirmation reflects the company's modest leverage, solid free cash flow, strong operating margins and potential for future growth. Total adjusted debt/EBITDAR fell to 2.3 times at year-end down from 2.5 times a year ago, and has the potential to decline incrementally over the next two to three years.

Company management has publicly stated its intention to maintain leverage near current levels, which Fitch said it views as strong for the BBB rating.

© 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.