Fitch rates Bunge notes BBB

Fitch Ratings said it assigned a BBB rating to Bunge Ltd. Finance Corp.'s proposed $500 million of senior notes due 2016.

The negative outlook, BBB issuer default rating and BB+ preferred shares remain unchanged.

The proceeds will be used for general corporate purposes including working capital usage and/or the repayment of upcoming debt maturities.

Bunge's ratings are supported by its position as the world's leading oilseed processor and by the diversification provided from its edible oil, milling, sugar & bioenergy and fertilizer segments, the agency said.

The ratings consider the magnitude of Bunge's earning volatility, particularly the weak earnings generated in 2009 through mid-2010 as well as periodic moderate operating earnings and cash flow volatility associated with the agricultural sector, the agency added.

Bunge's debt-to-EBITDA ratio was 0.5 times for the year ended Dec. 31.

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