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Moody's assigns Dole Food loan Ba3, lowers notes
Moody's Investors Service said it assigned a Ba3 rating to new senior secured credit facilities for Dole Food Co., Inc. and Dole's wholly owned subsidiary, Solvest, Ltd., under an unconditional secured guarantee from Dole.
Moody's said it also affirmed Dole's B1 corporate family rating, as well as the Ba3 rating on Dole's and Solvest's existing senior secured debt.
The ratings on existing Dole senior unsecured notes were downgraded to B3 from B2 and the B3 rating on second-lien debt at Dole Holding Co., LLC was affirmed, Moody's added.
The outlook is negative.
Affected ratings include Dole Food's $175 million senior secured seven-year term loan at Ba3 and $50 million senior secured seven-year pre-funded letter of credit facility at Ba3, Solvest's $700 million senior secured seven-year term loan at Ba3 and $50 million senior secured seven-year pre-funded letter of credit facility at Ba3.
Dole's debt has increased as the company invested in acquisitions and working capital and paid cash dividends, the agency said.
Yet its operating performance declined materially in 2005 and Moody's said it expects 2006 to be another challenging year.
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