Rating agency Standard & Poor's (S&P) has revealed that is has pushed down Chiquita Brands International's outlook and credit rating.
S&P revised its rating outlook to 'negative' from 'stable', and affirmed its 'B' corporate credit rating.
The move follows lower-than-expected opening quarter results, and takes into account the economic uncertainty which could cloud the fresh produce multinational's prospects for the coming year.
'The ratings on Chiquita reflect our view that the company's financial risk profile is 'highly leveraged' and business risk profile is 'weak',' S&P noted. 'Key credit factors in our assessment of Chiquita's business risk profile include the company's participation in the competitive, seasonal, commodity-oriented, and volatile fresh produce industry, which is subject to political and economic risks. We also consider the benefits of Chiquita's good geographical and customer diversification, strong market positions, and its well-recognised brand name.'
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