New York, May 14, 2015 -- Moody's Investors Service ("Moody's") said the debt ratings of Kansas City Southern's wholly-owned subsidiaries, The Kansas City Southern Railway Company (Baa3 stable) and Kansas City Southern de Mexico, S.A. de C.V. (Baa3 stable), are unaffected by today's announcement of a $500 million share repurchase authorization (expires in June 2017). This new authorization occurs amid weakness in certain end-markets for Kansas City Southern, elevated capital expenditures and some lingering service issues. The share repurchases are expected to be funded partially with incremental debt, although the elevated financial leverage that ensues remains within expectations for the Baa3 rating level.
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