S&P: Kirby on watch

Standard & Poor's said it placed Kirby Corp.'s A- long-term corporate credit rating on CreditWatch with negative implications.

The watch placement reflects the potential for significant added debt related to the company's proposed acquisition of K-Sea Transportation Partners LP, S&P said.

The transaction, valued at about $600 million, will be financed with a combination of cash, borrowings under Kirby's existing revolving credit facility, a new term loan of up to $540 million and issuance of Kirby common stock, the agency said.

The ratings incorporate the possibility that Kirby could make moderate-size acquisitions from time to time, S&P said.

Kirby currently has a solid financial profile with better-than-typical credit measures for its rating, the agency said.

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