Moody’s assigns Grab, loan B3

Moody’s Investors Service said it gave a B3 corporate family rating to Grab Holdings Inc. Concurrently, The agency assigned a B3 rating to Grab’s proposed senior secured term loan. Grab and its wholly owned subsidiary, Grab Technology LLC, are the borrowers. The loan is guaranteed by subsidiaries engaged in transport, food and delivery services.

“The B3 CFR reflects Grab’s leading position in key ride-hailing and food delivery markets across Southeast Asia, good long-term growth prospects, commitment to exercising cost discipline, as well as its substantial cash holdings which should be sufficient to fund sizeable operating losses and cash burn over at least the next two to three years,” said Stephanie Cheong, a Moody’s analyst, in a press release.

The loan will constitute most of Grab’s debt and is therefore rated in line with the CFR at B3, the agency said.

Loan proceeds will be used for general corporate purposes.

The outlook is stable.

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