S&P rates Grab, loan B-

S&P said it gave B- ratings to Grab Holdings Inc. and its planned dollar-denominated term loan that a group of subsidiaries will guarantee.

“We expect GHI’s losses to continue over the next two to three years in a nascent and highly competitive industry. The company is among the top two ride-hailing and food delivery platform operators across the eight Southeast Asian countries in which it operates,” S&P said in a press release.

The agency forecasts GHI’s improving scale and disciplined spending to result in positive EBITDA and cash flows by 2023. “Driven by a growing number of active users, normalization of the regional economy from Covid-19, and greater awareness of brand value, GHI’s net revenue is likely to rise 18% compounded annually over 2020–2023,” S&P said.

The outlook is stable. The outlook reflects an expectation that GHI will execute its business improvement and growth strategies to achieve higher profitability and positive FOCF by 2023, S&P said.

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