Standard & Poor’s Ratings Services lowered its long-term corporate credit rating on Matson Navigation Co. and its Honolulu-based parent, Alexander & Baldwin Inc.

The credit rating agency, which lowered its rating for the two firms to BBB+ from A-, cited a substantial decline in shipping volumes, and said it expects the effects of the U.S. recession and global economic weakness to continue to exert financial pressure on both companies.
“The negative outlook reflects our expectations that there could be a more meaningful reduction in the company’s cash generation and financial profile over the next year, if shipping volumes or real estate sales continue to fall, or if the agribusiness deteriorates further,” S&P said in its announcement.
S&P in May had placed ratings of A&B and Matson on a list of companies with negative implications, signaling that the credit downgrade could occur.