S&P Global Ratings upgraded Bunge Ltd. from BBB to BBB+ on Tuesday. The grain and oilseeds processor announced the merger with Vittera Ltd. in a deal which includes a commitment of repurchase $2 Billion Bunge shares in the 18-month period following the closing. The rating agency stated that Bunge, prior to this transaction, continued to maintain low leverage. This allowed it to complete this transformational purchase without materially affecting its credit measures. The statement said that the company’s debt to EBITDA ratio has been below 1.5x in the past two years. This is because its core agribusiness has benefited from high oilseed crush margins and strong merchandising margins, while its specialty oils have benefited from strong demand for food and renewable feedstocks. S&P expects the company’s leverage will remain below 1.5x for the next few months before the merger. After the merger it is expected to increase to about 1.7x. S&P said that it expects the combined entity to maintain leverage below 2x. This could support a possible upgrade to “A-” if the merger closes without material regulatory obstacles.