Fitch lifts Kansas City Southern de Mexico BBB-

Fitch Ratings said it assigned an issuer default rating of BBB- to Kansas City Southern and its primary operating subsidiary Kansas City Southern Railway Co.

Fitch also said it upgraded the issuer default rating of Kansas City Southern de Mexico, SA de CV to BBB- from BB, local-currency issuer default rating to BBB- from BB and senior unsecured notes to BBB- from BB.

Kansas City Southern Railway has a BBB rating on its senior secured bank facility.

The ratings for all issuers in the corporate family reflect the strong operational and strategic ties throughout the consolidated entity, Fitch said.

The outlook is stable.

The ratings consider a period of significant improvement in the railroad's operating and credit profile, the agency said.

The ratings are supported by the consolidated entity's solid operating margins and free cash flow, strong growth from cross-border business to Mexico, healthy liquidity and improved credit profile, Fitch said.

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