S&P: Kirby off watch

Standard & Poor's said that it affirmed the A- long-term corporate credit rating on Kirby Corp. and removed it from CreditWatch, where it was placed with negative implications on March 14 following the company's announcement that it was acquiring K-Sea Transportation Partners LP.

The outlook is stable.

The affirmation considers that even with added debt, the company will maintain its financial profile on improved earnings and strong cash flow generation supported by relatively stable revenues under mostly fixed-rate, long-term contracts, modest debt leverage and moderate capital spending, the agency said.

The ratings on Kirby reflect the firm's strong position in the domestic inland bulk liquid barge industry, its solid balance sheet and stable revenues under mostly fixed-rate, long-term contracts, the agency added.

Exposure to moderate cyclical demand swings in certain markets, ongoing investment and acquisition activity and the competitive nature of the industry somewhat offset these strengths, S&P said.

The outlook reflects expectations that the company will continue to maintain a solid financial risk profile, with support from strong cash flow, conservative debt leverage and a stable revenue base of mostly committed contract revenues, the agency added.

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