Moody's eyes Grab for upgrade

Moody's Investors Service said it placed Grab Holdings Inc.'s ratings under review for upgrade, including the B3 rating on its 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 agency changed the outlook under review from stable.

The review follows Grab's Tuesday announcement it agreed to merge with Altimeter Growth Corp., a special purpose acquisition company, that will result in Grab's public listing on the Nasdaq, the agency said.

"Grab's public listing will add $4.0-$4.5 billion of liquidity buffer upon successful completion, which will support the company's growth plans," said Stephanie Cheong, a Moody's analyst, in a press release. "More importantly, all of Grab's convertible redeemable preference shares will convert into equity upon listing, thereby eliminating the redemption risk associated with these shares which currently weighs on the company's credit profile."

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