S&P rates Chiquita loans, notes

Standard & Poor's said it assigned its B+ ratings and 3 recovery ratings to Chiquita Brands LLC's $150 million revolving credit facility due 2010 and $125 million term loan B due 2012.

In addition, the agency said it assigned its BB- rating and a 1 recovery rating to Chiquita's $375 million term loan B due 2012.

S&P said it assigned its B- rating to Chiquita Brands International Inc.'s $225 million senior unsecured notes due 2015 issued under Rule 144A with registration rights while affirming its B+ corporate credit rating.

The outlook is negative.

The ratings on Chiquita reflect the company's high debt leverage and modestly weaker credit measures following the Fresh Express acquisition as well as product concentration in bananas, the agency noted.

Partially mitigating these factors are Chiquita's strong market share in bananas, good geographic diversification of its sales and its somewhat improved product mix following the Fresh Express acquisition, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.