Grab Holdings Inc.

The stable outlook reflects our expectation that GHI will execute its business improvement and growth strategies to achieve higher profitability and positive FOCF by 2023. The outlook also incorporates our view that GHI will have sufficient liquidity to support its operations over the next 12 to 24 months, and the company will address its large CRPS maturity in June 2023 in a timely manner. We may lower the rating if GHI does not maintain an ample liquidity buffer or improve the sustainability of its capital structure over the next 12-18 months. This could happen if the company is unable to improve its operational performance and its cash burn is faster and more protracted than we expect. An indication of this

...Grab Holdings Inc.'s (GHI) losses to continue over the next two to three years, as it operates 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. GHI has the top market share by gross merchandise value in both ride-hailing and food delivery segments in Singapore and Indonesia, which are its biggest markets. The company adopts a super-app strategy, consolidating these services into a single mobile application, which encourages higher user stickiness. Despite its strong market position and double-digit growth in top-line, the company registered negative FOCF and EBITDA in 2019. We expect competition to remain high, with a strong investor pool backing GHI and its regional ride-hailing and food delivery competitors. GHI's ample liquidity and record of investor support could enable it to meet its financial obligations over the next 12¡24 months. Despite its current loss-making...

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