Wednesday, March 28, 2012

Standard & Poor's upgrades KCS credit rating

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Standard & Poor's on Tuesday upgraded Kansas City Southern's credit rating to B+ with a positive outlook, one level below an investment grade rating, which would further cut borrowing costs. The upgrade is based on stronger earnings along with lower debt and interest expenses.

"Our rating actions reflect KCS' stronger operating profitability, cash flow adequacy, and asset protection measures," said S&P credit analyst Anita Ogbara. She said S&P expects stronger earnings over the net year due to increased freight volume, especially in Mexico, and strong pricing.david-starling-kcs


Railway Age
named KCS President and CEO Dave Starling (in photo at right) its 2012 Railroader of the Year.

Announcing the award in Railway Age's January issue, Editor William C. Vantuono wrote: "The growth of what KCS calls the International Intermodal Corridor is one of several major accomplishments that have taken place under Starling's watch. In 2011, KCS achieved record carloadings and revenues. ... The railroad has been able to absorb additional volume with a stable workforce—a key indicator of productivity."