Financial research and analysis company Moody’s has sent shockwaves through the fresh produce sector by including two of the industry’s largest operators – Dole Food Company and Chiquita Brands International – in a new monthly report called the Bottom Rung, a list of 283 US-based companies which it says are most likely to default on their debt.
Also on the list are Eurofresh Inc, a major producer of greenhouse tomatoes based in Arizona, international juice marketer Tropicana, and Roundy's Supermarkets, a Wisconsin-based supermarket chain with 152 stores in Minnesota and Wisconsin.
According to Moody’s, the companies on the list have not defaulted, but carry either a probability of default (PD) rating of Caa1 or lower, B3 with a negative rating outlook, or B3 with a rating set to be downgraded under review. The list shows Dole with a PD rating of Caa1, while Chiquita’s rating is B3; both carry a “negative” outlook rating.
“Industries with broad exposure to weak consumer spending… are highly represented in the Bottom Rung,” said a spokesperson for Moody’s.
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