S&P ups Chiquita to stable

Standard & Poor's said it revised its outlook on Chiquita Brands International Inc. to stable from negative while it also affirmed the existing ratings on the company, including the B- corporate credit rating.

The outlook revision reflects operating results in the first half of 2008 that exceeded its expectations, improved credit measures, and strong covenant cushion. In addition, the agency said it expects some near-term debt repayment using proceeds from the recent sale of Chiquita's Atlanta AG subsidiary for net proceeds of €65 million, including working capital and net debt adjustments, the agency said.

Although Atlanta generated about $1.2 billion of sales in 2007, it reported an operating income loss of $500,000, the agency noted.

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