Chiquita Brands Int'l Rtgs Placed on Watch Neg byS&P.

NEW YORK--(BUISNESS WIRE)--S&P's CreditWire 11/4/98--Standard & Poor's today placed its double-'B'-minus corporate credit rating, single-'B'-plus senior unsecured debt rating, single-'B' subordinated debt and preferred stock ratings, and preliminary single-'B'-plus/single-'B' shelf debt rating of

This action reflects continued weak operating performance for the current rating, as well as the uncertainty surrounding the potential impact of Hurricane Mitch on the company's financial profile.

About $1.1 billion of total debt is outstanding.

Recent financial results have been below levels expected for a commodity-oriented food processor at the current rating level.

For the 12 months ended September 1998, earnings before interest, taxes, depreciation, and amortization (EBITDA) interest coverage was weak at about 2.1 times (x), and total debt to EBITDA was high at about 5.5x. While the widespread damage caused by Hurricane Mitch will reduce banana supplies and likely result in higher banana prices in the near term, the net impact of lower volumes, higher prices, and the cost to restore lost banana supplies remains uncertain.

Standard & Poor's will review its ratings on Chiquita after evaluating the company's ability to improve operating results and the ultimate impact of the damage caused by Hurricane Mitch.--CreditWire