S&P hikes Kirby

S&P said it upgraded its ratings for Kirby Corp. and its senior unsecured notes to BBB from BBB-.

“We expect Kirby's credit metrics will remain strong over the next few years as steady demand for barge activity is met with tight supply conditions. Barge utilization was strong through 2023 from steady liquid volumes, which we expect will continue over the next 12 months. Kirby has also benefited from several factors restricting barge supply in the industry–greater equipment and borrowing costs, labor rates, and elevated steel prices–which have all contributed to minimal barge construction,” S&P said in a press release.

The agency noted S&P Global Ratings-adjusted leverage decreased to 1.9x at Dec. 31 from 2.7x a year ago, and forecasts it to hover near 2x over the next few years, absent any significant debt-funded transactions.

The outlook is stable.

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