Research Update: Grab Holdings Ltd. Upgraded To 'B' On Strong Liquidity And Positive EBITDA Prospects; Outlook Stable

We expect Grab Holdings Ltd.'s adjusted EBITDA will turn positive in 2024 amid rising gross merchandise value and take rates, declining incentives, and a focus on profitability. We also forecast the company to start generating positive operating cash flows (OCF) in the same year. The Singapore-based mobility, delivery, and digital financial services platform provider's liquidity buffer should remain strong. We expect its unrestricted cash and cash equivalents to be above US$3 billion over the next 24 months at least. We raised our long-term issuer credit rating on Grab to 'B' from 'B-'. At the same time, we raised our issue rating on the company's term loan B to 'B' from 'B-'. The stable outlook reflects our view that Grab's liquidity

...- We expect Grab Holdings Ltd.'s adjusted EBITDA will turn positive in 2024 amid rising gross merchandise value and take rates, declining incentives, and a focus on profitability. We also forecast the company to start generating positive operating cash flows (OCF) in the same year. - The Singapore-based mobility, delivery, and digital financial services platform provider's liquidity buffer should remain strong. We expect its unrestricted cash and cash equivalents to be above US$3 billion over the next 24 months at least. - We raised our long-term issuer credit rating on Grab to 'B' from 'B-'. At the same time, we raised our issue rating on the company's term loan B to 'B' from 'B-'. - The stable outlook reflects our view that Grab's liquidity will be ample as it continues its path toward achieving positive EBITDA and cash flows over the next few quarters. It also reflects our view that Grab will remain focused on driving profitability as cash burn and reinvestment eases....

Research Update