Moody’s rates Grubhub notes Ba3

Moody's Investors Service said it assigned first-time ratings to Grubhub Holdings Inc., including a Ba3 corporate family rating, Ba3-PD probability of default rating, Ba3 (LGD 4) rating to the proposed $400 million of senior unsecured notes due 2027 and SGL-1 speculative grade liquidity rating.

The outlook is stable.

The proceeds will be used to repay the $340 million of outstanding borrowings under its credit facilities, Moody’s said.

Grubhub Holdings is a wholly-owned direct subsidiary of Grubhub Inc.

The ratings reflect Grubhub's strong revenue growth prospects, large addressable market and market position as the largest online provider of takeout orders in the United States for independent and enterprise restaurants, the agency explained.

The company’s large market opportunity has drawn increasing competition and Moody’s said it believes that Grubhub's industry will continue to evolve amid intensifying competition.

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