Moody's rates Chiquita notes B2

Moody's Investors Service said it assigned a B2 rating to the $250 million senior unsecured note issue due 2014 of Chiquita Brands International Inc. and affirmed Chiquita's B1 senior implied rating. The outlook is stable.

Proceeds from the notes will refinance Chiquita's existing $250 million 10.56% notes due 2009.

Moody's also affirmed its B1 senior implied rating and B2 unsecured issuer rating.

Moody's said Chiquita's ratings reflect moderate debt levels, a well-established market position and a well-recognized brand name, but also take into account the company's product concentration on bananas and its earnings concentration in Europe.

With total debt of $372 million at June 30, Chiquita's leverage is moderate, at 2.7x last 12 months EBITDA.

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