Fitch ups Kansas City Southern, rates notes BB

Fitch Ratings said it upgraded the foreign- and local-currency issuer default ratings of Kansas City Southern de Mexico, SA de CV and its $175 million 7 5/8% senior notes due 2013, $165 million 7 3/8% senior notes due 2014 and $130 million 12½% senior notes due 2016 to BB from BB-.

The agency also said it assigned a BB rating to its $300 million 8% senior notes due 2018.

The outlook is stable.

The upgrade reflects the company's business recovery and solid operational performance during the last 12-month period that ended Sept. 30, Fitch said.

The ratings also reflect the company's improved leverage profile following stronger cash flow generation, along with its solid business position and diversified revenue base as a leading provider of railway transportation services in Mexico, the agency said.

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