S&P: Chiquita unchanged

Standard & Poor's said its ratings and outlook on Chiquita Brands International Inc. (B+/negative) presently are not affected by the European Commission's proposed tariff of €176 per metric ton on banana imports from countries other than former French, British and Portuguese colonies.

At present, the current tariff level is €75 per metric ton; however, the new tariff is set to come into effect on Jan. 1, 2006, the agency said, noting Chiquita has estimated that the increase could adversely impact costs by as much as $110 million per year.

Should the proposed tariff be implemented, S&P said it expects Chiquita's margins will come under pressure from higher import costs.

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