Fitch gives AA to Wal-Mart notes

Fitch Ratings said it assigned an AA rating to Wal-Mart Stores, Inc.'s multi-tranche issuance of up to ¥170 billion (equivalent of $1.5 billion) five-year, seven-year and 10-year senior unsecured notes.

Proceeds will help fund the tender offer of up to $2 billion notes maturing 2037 through 2041 announced on June 15.

Fitch said the ratings reflect the operational and financial flexibility and strong free cash flow profile that result from the company’s substantial scale and dominant market position in North America. Wal-Mart generated $481 billion of sales in 2016 (year ended Jan. 31, 2017).

Despite its large size and increased competition from alternative discount formats, including online-only players, the company's ability to invest in its business while exercising price leadership has led to Wal-Mart maintaining market share in nearly all categories in recent years, the agency added.

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