S&P ups Horizon Lines outlook to positive

Standard & Poor's said it revised its outlook on Horizon Lines Inc. to positive from stable and affirmed the B corporate credit rating and CCC+ senior unsecured debt rating.

S&P said the outlook revision reflects Horizon Line's solid operating performance and improving financial profile.

Ratings on Horizon Lines reflect its aggressive financial profile, modest financial flexibility, participation in the capital-intensive and competitive shipping industry and an aging fleet, the agency said.

Positive credit factors include barriers to entry afforded by the Jones Act (which applies to intra-U.S. shipping) and stable demand from the company's diverse customer base across its various markets.

S&P said total debt at the end of 2005 was about $800 million and total debt to EBITDA was roughly 6x.

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