S&P gives Horizon loan BB+

Standard & Poor's said it assigned a BB+ rating and a 1 recovery rating to Horizon Lines Inc.'s (BB-/stable) proposed senior secured first-lien credit facilities, consisting of a $250 million revolving credit facility and a $125 million term loan A, both facilities mature in 2012.

The agency said that ratings reflect Horizon Lines' highly leveraged albeit improving financial profile and participation in the capital-intensive and competitive shipping industry.

S&P noted that positive credit factors include the barriers to entry afforded by the Jones Act, which applies to intra-U.S. shipping, stable demand from the company's diverse customer base and improving operating performance.

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