S&P downgrades Kirby

S&P said it lowered its corporate credit rating on Kirby Corp. to BBB from BBB+ and removed the rating from CreditWatch, where it was placed with negative implications on Feb. 5.

The outlook is stable.

At the same time, the agency affirmed the BBB issue-level rating on the company's senior notes.

S&P said the downgrade follows Kirby's announcement that it has completed its debt-financed acquisition of Higman Marine Inc.

Kirby used the proceeds from its $500 million senior note offering to fund the acquisition and repay a portion of revolver borrowings.

“This transaction increased the company's adjusted debt-to-EBITDA above 2x and we expect leverage to remain in this range for the next two years,” the agency said in a news release.

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