S&P could lower Chiquita

Standard & Poor's said that the ratings on Chiquita Brands International Inc. remain on CreditWatch with negative implications following reports that the company, in addition to other banana import companies, received a Statement of Objections from the European Commission.

The company has corporate credit and senior secured local-currency ratings of B, senior unsecured local-currency rating of CCC+ and $375 million term loan C at B+.

The document concerns an ongoing European Commission investigation regarding potential violations of European competitive laws in the banana industry. Based on Chiquita's voluntary notification and cooperation with the investigation, the commission granted the company conditional immunity from any fines related to the conduct, S&P said.

The ratings were initially placed on CreditWatch with negative implications on May 2, following weak first-quarter operating results due to high purchased fruit and other industry costs and lower local banana prices in Europe.

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