S&P rates Chiquita Brands notes B

Standard & Poor's said it raised its corporate credit rating on Chiquita Brands International Inc. to B+ from B and senior unsecured notes to B from B-. The outlook is stable. In addition, S&P assigned a B rating to the proposed $250 million senior notes due 2014.

Proceeds from the note issue will be used to refinance the company's existing $250 million 10.56% senior notes due 2009.

According to S&P, the upgrade acknowledges a strengthening of the company's financial profile through extensive cost restructuring in recent years, its ability to regain access to the european market, and modestly lower debt leverage.

S&P said the rating on Chiquita reflects the company's product concentration in bananas, a mature industry that faces such uncontrollable factors as global supply risk, political risk, and risks from weather and disease. Partially mitigating these factors are Chiquita's strong market share in bananas, the good geographical diversification of its sales, and the company's improving cost and capital structure.

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