Horizon Lines Inc., one of the shippers serving Hawai'i, said lenders have cut the size of its credit facility and raised the interest rate in exchange for relaxing some terms.

Lenders led by Wachovia Bank N.A. cut the credit line to $225 million from $250 million, Horizon said. Additionally, a $150 million credit facility will be eliminated, the Charlotte, N.C.-based company said in a filing with the U.S. Securities and Exchange Commission.

Horizon Lines also said it settled a class-action lawsuit filed by customers who alleged price fixing in the company's Puerto Rico shipping service. The company agreed to pay $20 million and to freeze some base rates.

MATSON, A&B RATINGS FALL TO BBB+

Standard & Poor's Ratings Services yesterday 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.

JBT WINS $10M AIRPORT CONTRACT

The state has awarded a $10 million contract to JBT Corp. to build 15 new passenger boarding bridges in the diamondhead and 'ewa concourses at Honolulu International Airport, JBT announced.

The work being done by the company's JBT AeroTech unit is part of the third phase of the Hawai'i Airports Modernization Program. JBT AeroTech expects to complete installation by the fourth quarter of 2010.

To date, JBT AeroTech has built 56 passenger boarding bridges in six separate projects at the airport.