Fitch eyes Bunge positively

Fitch Ratings said it placed all of Bunge Ltd.'s ratings, including its BBB long-term issuer default rating and all its subsidiaries’ ratings on rating watch positive. The RWP follows the announcement of the company's merger agreement with Viterra Ltd.

“The rating watch positive reflects Fitch's view that the merger would materially enhance Bunge's business profile, creating a leading global agribusiness-focused company that significantly increases scale with pro forma combined EBITDA of more than $4 billion and greater diversification across regions and commodities with RMI-adjusted leverage in the low-2x. Given the increased scale and diversification, sustaining an RMI-adjusted leverage of 2x-2.5x would be commensurate with a BBB+ rating,” Fitch said in a press release.

The agency said it aims to resolve the RWP once the deal closes, which is expected in mid-2024, subject to customary closing conditions including regulatory and shareholder approvals.

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