Fitch Ratings has initiated coverage and assigned initial ratings for Dole Food Company, Inc., its parent, and its Bermuda subsidiary:

Dole Food Company, Inc.

-- Senior secured bank facilities 'BB';

-- Senior unsecured debt 'B+'.

Dole Holding Company, LLC

-- Second-lien term loan 'B+';

-- Senior subordinated note shelf offering 'B-'.

Solvest Ltd.

-- Senior secured bank facilities 'BB';

This rating action affects approximately $1.9 billion of debt. The Rating Outlook is Stable.

The ratings and Outlook consider Dole Food Company, Inc.'s (Dole) strong global market position, the high brand awareness of the DOLE trademark, efficiencies gained from the company's business reorganization and rationalization efforts over the past five years, and favorable consumption trends as consumers become more weight and health conscious. These positives are balanced against the company's high financial leverage, lower margin commodity product orientation, uncertainty related to final implementation of the European Union's (EU) tariff-only banana import policies, and uncertainty related to future use of operating cash flow.

The rating on Dole's senior unsecured debt is based on current credit metrics. Dole's leverage, as defined by total debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) is 4.8 times (x) and net cash flow from operations-to-total debt is 12% for the latest 12 months ending Oct. 9, 2004. Dole's interest coverage, as defined by its EBITDA-to-interest incurred, is 2.5x for the same period. Leverage has been impacted by the company's 2003 privatization which increased debt levels by approximately $1 billion and by the $175 million acquisition of J.R. Wood, a producer and marketer of branded and non-branded frozen fruit products, in 2004. Credit metrics for the latest 12 months ending Oct. 9, 2004 have also been impacted by margin pressure and higher working capital utilization.

The higher rating on Dole's secured bank debt reflects the strong security provided by the company's collateral, which includes substantially all of its assets. The lower rating on Dole's second-lien term loan and subordinated notes is indicative of their junior priority and lower potential recovery.

The Outlook encompasses Fitch's expectation that the current pressure on operating earnings caused by increased fuel, packaging, and production costs will be transitory in nature. While pricing flexibility is limited for Dole's commodity based products, Fitch anticipates that EBITDA margins will stabilize as these cost pressures moderate in the intermediate term. Although uncertainty exists related to the final Jan. 1, 2006 implementation of the EU tariff-only banana regime, Fitch expects the tariff amount to continue to be negotiated and as such does not expect a final decision within the next 12 months. Negative rating implications would be persistent margin pressure, a significant reduction in cash flow due to high European banana tariffs, or significant further increases in leverage.

Dole Food Company is one of the world's largest producers of fresh fruit, fresh vegetables, and fresh-cut flowers. 54% of the company's revenue is generated from outside of the United States. The company's operations are fully integrated with the vast majority of growing, harvesting, processing and packaging done in South America and the Far East. 58% of Dole's tangible assets are outside of the United States. The company has four operating segments: Fresh Fruit 66% of revenues and 70% of operating income, Fresh Vegetables 18% of revenues and 19% of operating income, Packaged Foods 12% of revenues and 11% of operating income, and Fresh-Cut Flowers 4% of revenues and 0% of operating income. Dole Foods is 100% owned by its CEO and Chairman, David H. Murdock.

Fitch's ratings on Dole Food Company, its parent, and subsidiary were initiated as a service to the users of its ratings and are based on public information.