S&P: Chiquita Brands view stable

Standard & Poor's said it revised its rating outlook on Chiquita Brands International Inc. to stable from negative and affirmed its B corporate credit rating on the company.

The agency also affirmed its B issue-level rating on Chiquita's $425 million senior secured notes due 2021 (operating subsidiary Chiquita Brands LLC is a co-issuer). The recovery rating remains 4, indicating an expectation for average (30% to 50%) recovery in the event of a payment default.

In addition, S&P affirmed the CCC+ issue-level rating on Chiquita's 4.25% convertible senior notes due 2016. The recovery rating remains 6, indicating an expectation for negligible (0% to 10%) recovery in the event of a payment default.

"The outlook revision reflects our expectation that Chiquita's credit metrics will continue to improve from EBITDA growth as a result of new management's cost savings initiatives," S&P credit analyst Jeff Burian said in a news release.

S&P said the ratings on Chiquita reflect its view that the company's financial risk profile is "highly leveraged" and its business risk profile is "weak."

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