New legislation in Mexico could trip up Kansas Southern

Kansas Southern (KSU -7.1%) trades lower on concerns the company could take a hit from new railroad legislation in Mexico.

JPMorgan has moved its rating on KSU to Neutral from Overweight due to the development in Mexico.

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Comments (1)
  • James Sands
    , contributor
    Comments (2694) | Send Message


    I'm assuming that this is driving the downgrade. It appears that the heavy-hitters including Union Pacific and Kansas City Southern on the U.S. front and Ferromex and Ferrosur on Mexico's side will make a push to quash this issue.


    Mexican officials are going to have to consider the billions of investments from these companies that will be at risk if the Senate allows further competition through violating the concession agreement in place. Plus the need for investment from the government and other private companies will be substantial.
    18 Feb 2014, 10:58 AM Reply Like
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