Moody's rates Kansas City Southern Railway loan Baa3

Moody's Investors Service said it upgraded the ratings of Kansas City Southern and the Kansas City Southern Railway Co., senior unsecured shelf rating to provisional Baa3 from provisional Ba2.

Moody's also upgraded the corporate family rating of Kansas City Southern de Mexico S.A. de CV, a wholly owned subsidiary of Kansas City Southern, to Ba1 from Ba2.

At the same time, Moody's has assigned a Baa3 rating to Kansas City Southern Railway's amended bank credit facility.

The outlooks are stable.

Moody's said that although the amended facility is currently secured by substantially all assets of the company's U.S. operations, the terms of the amended facility prescribe a fall-away provision relating to certain rating changes, whereby the collateral is released from security pledges and the facilities effectively become senior unsecured obligations of the company.

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