Fitch gives Kansas City Southern loan, notes BBB-

Fitch Ratings said it assigned a BBB-(EXP) rating to Kansas City Southern's (KCS) proposed senior unsecured credit facility and notes issuance.

The agency also assigned an F3 short-term issuer default rating to the company and an F3(EXP) rating to its proposed commercial paper program.

Fitch has existing unsecured and short-term ratings for both of Kansas City Southern’s operating subsidiaries (Kansas City Southern Railway Co. and Kansas City Southern de Mexico SA de CV) but previously did not have issue ratings for the parent company.

Assignment of the unsecured and short-term ratings follows Kansas City Southern’s exchange offer of the existing unsecured notes at both Kansas City Southern Railway and Kansas City Southern de Mexico and the concurrent launch of a new $800 million unsecured credit facility and commensurately sized commercial paper program. The exchange offer is an effort to simplify Kansas City Southern’s debt structure, with the intention of moving all existing debt at each of the operating subsidiaries, to the parent company level.

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