TORONTO, ONTARIO, CANADA — Fitch Ratings has upgraded Bunge Global SA’s long-term issuer default rating as well as the long-term debt ratings of the company’s operating subsidiaries to “BBB+” from “BBB-.” Fitch said the upgrade in part reflects “increased certainty” that Bunge will receive the necessary regulatory approvals to move forward with its merger with Viterra Ltd.

“This merger is anticipated to materially enhance Bunge’s business profile, creating a leading global agribusiness-focused company with significantly increased scale and greater diversification across regions and commodities,” Fitch said.

Bunge and Viterra announced in June 2023 that they had agreed to a merger that will create one of the world’s largest agribusiness companies, moving it closer in size and scope to leading agribusiness giants Cargill and ADM.

In its ratings update, Fitch described the potential Bunge-Viterra merger as a “transformative transaction.”

“The merger is complementary and would add origination assets to Bunge’s strong position in oilseed processing,” Fitch said. “It would also create a better balance across processing, merchandising, handling and downstream assets. The transaction would also increase diversification across geographies and commodities, which should support greater profit resiliency, particularly in periods of market dislocation.”