(The Associated Press circulated the following on December 22.)
NEW YORK — Standard & Poor’s Ratings Services said Monday it is less likely to lower its ratings on Kansas City Southern after the railroad operator’s recent $175 million debt issuance.
The credit ratings agency raised its outlook on Kansas City Southern to “Stable” from “Developing” and reaffirmed its “B+” corporate credit rating.
Last week, the Kansas City, Mo., company said it would offer $175 million in senior notes due in 2013. The company said it would use the proceeds to repurchase $200 million in debt due next year.
S&P said the new debt issuance eases liquidity concerns over the company in the short term and makes a downgrade less likely. However, S&P also cautioned that an upgrade is also unlikely, given the bleak economic picture.
Earlier this month, Kansas City Southern cut its revenue and earnings outlook for the fourth quarter, saying the faltering economy was cutting into shipping volumes.
Shares of Kansas City Southern closed Friday at $19.02. The stock is down 45 percent for the year and has traded between $15.71 and $55.90 in the last 52 weeks.