(The Associated Press circulated the following on April 6, 2009.)
NEW YORK — Standard & Poor’s on Monday affirmed regional railroad operator Kansas City Southern’s long-term corporate credit rating.
S&P said it affirmed its ‘B’ non-investment grade rating on Kansas City Southern and removed the ratings from CreditWatch, where they were placed with negative implications on March 24 following concerns about the company’s liquidity position and its deteriorating earnings and cash flow.
The outlook is negative.
“The rating action reflects decreased concerns regarding the company’s liquidity position subsequent to the recent completion of a $200 million bond offering by its Mexican subsidiary,” said Standard & Poor’s credit analyst Anita Ogbara.
Still, S&P said declining volumes and capital expansion plans will hamper financial performance and limit free cash flow during the first half of 2009.
Shares fell 16 cents to close at $14.04.