S&P: Dole view to positive

Standard & Poor's said it affirmed the corporate credit rating on Dole Food Co. Inc. at B and revised its outlook to positive from developing.

The outlook change follows news that Dole signed a definitive agreement with Itochu Corp. for the sale of its worldwide packaged foods and Asia fresh produce businesses for $1.685 billion in cash, S&P said.

This proposed transaction is subject to Dole stockholder approval and customary regulatory approvals in multiple countries.

Dole indicated it will apply cash proceeds from the transaction to debt reduction, to pay deal-related expenses and for restructuring and other corporate purposes, S&P said.

A divestiture of these businesses will result in a weaker business risk profile because this reduces Dole's product diversity and profitability, the agency said.

But, the company's planned debt reduction will result in a stronger financial risk profile, S&P added.

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