S&P Global Ratings upgraded Bunge Ltd. to BBB+ from BBB on Tuesday, after the grain and oilseed processor announced a merger with Vittera Ltd in a deal that includes a commitment to repurchase $2 billion of Bunge stock in the 18 months following the close.
“Bunge, pre this transaction, continues to maintain very low leverage, which has provided it with the balance sheet flexibility to consummate this transformational acquisition without materially pressuring its credit measures,” the rating agency said in a statement. The company has sustained debt to EBITDA of below 1.