S&P lowers Alexander & Baldwin, Matson

Standard & Poor's said it lowered the long-term corporate ratings of Alexander & Baldwin Inc. and subsidiary Matson Navigation Co. Inc. to BBB+ from A- and removed the ratings on both entities from CreditWatch, where they were placed with negative implications on May 4.

The outlook is negative.

The agency said the downgrade reflects the companies' weaker operating performance and S&P's view that their financial profiles will remain under pressure due to the U.S. recession and global economic weakness.

The negative outlook reflects S&P's view that there could be a more meaningful reduction in the companies' cash generation and financial profiles over the next year if shipping volumes or real estate sales continue to fall or if the agribusiness deteriorates further, the agency said.

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