Fitch: Bunge unaffected

Fitch Ratings said Bunge Ltd.'s plan to sell its fertilizer nutrients business in Brazil to Vale SA for $3.8 billion in cash has no immediate impact on its ratings.

The company has committed to use the proceeds for debt repayment and growth investments. The agency anticipates that Bunge will repay enough long-term debt in the near term to achieve a total debt-to-operating EBITDA ratio of 2.5 to 3.0 times in most years, compared with an expected ratio of 4 to 5 times for full-year 2009. The expectation of debt reduction is factored into Bunge's current ratings, including the BBB issuer default rating, and stable outlook.

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