Hawaii credit rating holds as tourism rebounds

New York >> Hawaii sidestepped a lower credit rating on $3.4 billion of its general obligation bonds because tourism has rebounded from a slump after September's terrorist attacks, Standard & Poor's said in a Bloomberg News report. The credit-rating company said in October it might lower the "AA-" grade on Hawaii's bonds, citing canceled trips by tourists. Tourism-related spending accounts for about one-quarter of Hawaii's annual economic activity, and a drop in visitors can mean less tax revenue that is used to pay bondholders.

While the attacks "had an immediate and dramatic impact on Hawaii's tourism," the state's overall visitor tally in 2001 ended up "only" 9.1 percent lower than the record-setting 6.9 million the year before, S&P said.

Hawaii's visitor traffic plunged 34 percent in September over the same month in 2000, triggering S&P's downgrade statement. The tourism decline narrowed to 16 percent in December. That improvement, and state spending cuts to protect cash reserves, provided enough stability to avoid a downgrade, S&P said.

First Hawaiian to close Eaton Square branch

First Hawaiian Bank plans to close its Eaton Square branch on the edge of Waikiki on April 26. The bank said it would listen to customers of the former Pioneer Savings branch today before making a final decision but it seemed likely to close.

There are two First Hawaiian branches within three-quarters of a mile, bank spokesman Gerry Keir said. One is in Waikiki at Kalakaua and Lewers and the other is on Kapiolani Boulevard. Customers have told the bank they would like to keep Eaton Square open and they will be heard, Keir said.

Hawaiian Air carries fewer during December

Hawaiian Airlines said it had an 8.8 percent decline in December passenger numbers -- 439,272 people compared to 481,513 in December 2000.

But thanks to flight cutbacks, paring the number of available seats, the airline increased its load factor -- the percentage of available seats occupied by paying passengers -- to 78.8 percent from 72.9 percent in December 2000. The report covers Hawaiian's total system, interisland in Hawaii plus mainland-Hawaii and Hawaii-South Pacific services, and does not single out individual segments.

State OKs 4.6% hike in workers' comp insurance

The state Insurance Division yesterday approved a 4.6 percent increase in worker's compensation rates. The increase was about half of the amount insurers said was needed to cover costs. The National Council on Compensation Insurance, representing the insurers, had filed for a 9.1 percent increase. But the division said the rate was not justified given the cost of claims paid out by insurers.

The increase follows consecutive workers' comp rate decreases in 1996, 1997 and 2000 which totaled 41 percent.

Matson sells 2 ships to Caribbean partner

Matson Navigation Co., which has leased two ships since 1998 to a shipping operation that serves Puerto Rico, has now sold the ships to the Atlantic-Caribbean operation called Sea Star Line.

The price was not disclosed. Matson bought the vessels, which could handle ramp-delivered wheeled vehicles and crane-handled deck cargo, in 1989 and 1990. Matson later increased the crane and container capacity of each ship and now has sold them, but remains an investor-partner in Florida-based Sea Star.