Fitch rates Kansas City Southern notes BBB-

Fitch Ratings said it assigned a BBB- rating to Kansas City Southern’s senior unsecured credit facility and senior unsecured notes.

The agency also said it assigned an F3 rating to the company’s proposed commercial-paper program.

Kansas City Southern has an issuer default rating of BBB-, short-term issuer default rating of F3.

Kansas City Southern Railway Co. has an issuer default rating of BBB-, short-term issuer default rating of F3, commercial-paper rating of F3, senior unsecured bank facility rating of BBB- and senior unsecured notes rating of BBB-.

Kansas City Southern de Mexico SA de CV has an issuer default rating of BBB-, local-currency issuer default rating of BBB-, short-term issuer default rating of F3, commercial-paper rating of F3 and senior unsecured notes rating of BBB-.

The outlook is positive.

Fitch said it does not believe that the company’s change in capital structure has an impact on the credit quality of the debt.

The ratings reflect an expectation of continued moderate economic growth in the United States and Mexico, a single-digit revenue decline in 2015 followed by modest growth thereafter and expanding operating margins over the intermediate term, the agency said.

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