S&P Affirms Kirby Debt Rating

HOUSTON (AP) — Standard & Poor's said Friday it was affirming its investment grade long-term corporate debt rating on Kirby Corp., which operates a fleet of oil tankers and towing vessels.

The ratings agency also said the rating outlook for Kirby remains stable.

It affirmed its "BBB+" long-term corporate rating on Kirby, which had roughly $440 million of lease-adjusted debt outstanding at Dec. 31.

Debt ratings can affect companies' borrowing costs.

S&P said its ratings on Kirby "reflect its strong position in the domestic inland bulk liquid barge industry, the company's solid financial risk profile and stable revenues under mostly fixed-rate, long-term contracts."

The agency said that despite the company's stable revenue base, the U.S. recession and prolonged global economic downturn has resulted in modest volume and pricing pressures across the spectrum of products transported and services offered. Even so, S&P said it expects that the large proportion of committed contract revenues and the diversity of markets served should help cushion the impact of the economic downturn and exposure to cyclical demand in certain markets.