Kansas City Southern de Mexico Upgraded

Railway company Kansas City Southern de Mexico has been upgraded to Ba3 from B1 by Moody’s, with a positive outlook, according to a release by the ratings agency. The reason for the upgrade was revenue growth, in line with higher growth in the Mexican industrial sectors. The company’s operating margins have improved, which has led to increased profitability. This, together with reduction of debt levels, has led to an improvement of the company’s credit metrics, says Moody’s. Moody’s expects a continuation in revenue growth. It adds that the company could be upgraded if railroad operations show sustained growth over the next six to 12 months.