S&PGR Rates Bunge’s Senior Unsecured Notes ‘BBB’

Press Release: S&PGR Rates Bunge’s Senior Unsecured Notes ‘BBB’

 
 
The following is a press release from Standard & Poor's: 
 
NEW YORK (S&P Global) Aug. 10, 2016--S&P Global Ratings today assigned its 
'BBB' issue-level rating to White Plains, N.Y.-based Bunge Ltd. subsidiary 
Bunge Limited Finance Corp.'s senior unsecured notes (issued by Bunge Limited 
Finance Corp. and fully guaranteed by Bunge Ltd.). The company will use the 
net proceeds from the debt issuance for general corporate purposes, including 
repaying debt. 
 
Bunge issues its senior unsecured debt on a fully guaranteed basis by Bunge 
Ltd. through its two financing subsidiaries (Bunge Europe Finance BV and Bunge 
Limited Finance Corp.), which in turn fund Bunge's operating subsidiaries with 
senior unsecured intercompany loans. In our opinion, this structure makes all 
senior unsecured indebtedness across Bunge's entities pari passu. Therefore 
structural subordination is not material and the issue-level ratings on the 
debt issued by its financing subsidiaries have the same 'BBB' rating as our 
corporate credit rating on Bunge Ltd. 
 
The ratings on Bunge Ltd. reflect its global leadership position in grain 
origination and processing, particularly in soybean crushing and distribution; 
and regional diversification (including key grain origination and distribution 
locations globally). Additionally, pricing of agricultural commodities may 
cause volatility in Bunge's operating results. We believe that despite some 
quarter-to-quarter earnings volatility, Bunge will sustain debt to EBITDA near 
2x or lower and funds from operations to debt of about 35% to 40% in fiscal 
2016 and beyond. 
 
RELATED CRITERIA 
     -- Key Credit Factors For The Agribusiness And Commodity Foods Industry, 
Jan. 29, 2015 
     -- Commodities Trading Industry Methodology, Jan. 29, 2015 
     -- Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014 
     -- Corporate Methodology: Ratios And Adjustments, Nov. 19, 2013 
     -- Methodology: Industry Risk, Nov. 19, 2013 
     -- Group Rating Methodology, Nov. 19, 2013 
     -- Corporate Methodology, Nov. 19, 2013 
     -- Management And Governance Credit Factors For Corporate Entities And 
Insurers, Nov. 13, 2012 
     -- Hybrid Capital Handbook: September 2008 Edition, Sept. 15, 2008 
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008 
     -- Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013 
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 
     -- Ratings Above The Sovereign--Corporate And Government Ratings: 
Methodology And Assumptions, Nov. 19, 2013 
 
RATINGS LIST 
Bunge Ltd. 
 Corporate Credit Rating               BBB/Stable/-- 
 
New Rating 
Bunge Limited Finance Corp. 
 Senior Unsecured Notes due 2016       BBB 
 
Certain terms used in this report, particularly certain adjectives used to 
express our view on rating relevant factors, have specific meanings ascribed 
to them in our criteria, and should therefore be read in conjunction with such 
criteria. Please see Ratings Criteria at www.standardandpoors.com for further 
information. Complete ratings information is available to subscribers of 
RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. All 
ratings affected by this rating action can be found on the S&P Global Ratings' 
public website at www.standardandpoors.com. Use the Ratings search box located 
in the left column. 
 
Primary Credit Analyst: Chris Johnson, CFA, New York (1) 212-438-1433; 
                        chris.johnson[a]spglobal.com 
Secondary Contact: Jessica Paige, New York 212-438-1730; 
                   jessica.paige[a]spglobal.com 
 
 
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