Research Update: Grab Holdings Ltd. Upgraded To 'BB-' On Likelihood Of Sustained Positive EBITDA And Cash Flow; Outlook Stable

Grab Holdings Ltd. is set to achieve its first full year of positive EBITDA in 2024, following four consecutive quarters of positive EBITDA. Furthermore, we expect the company's operating cash flow (OCF) to remain positive and grow over the next 12 to 24 months. In our view, the Singapore-based platform provider of mobility, delivery, and digital financial services is committed to maintaining a strong liquidity buffer to support its business growth. We estimate Grab's gross debt-to-EBITDA ratio will be less than 2.0x in 2024, and to further improve thereafter with rising earnings. We raised our long-term issuer credit rating on Grab to 'BB-' from 'B+'. The stable rating outlook reflects our view that Grab will sustain positive EBITDA and OCF,

...- Grab Holdings Ltd. is set to achieve its first full year of positive EBITDA in 2024, following four consecutive quarters of positive EBITDA. Furthermore, we expect the company's operating cash flow (OCF) to remain positive and grow over the next 12 to 24 months. - In our view, the Singapore-based platform provider of mobility, delivery, and digital financial services is committed to maintaining a strong liquidity buffer to support its business growth. We estimate Grab's gross debt-to-EBITDA ratio will be less than 2.0x in 2024, and to further improve thereafter with rising earnings. - We raised our long-term issuer credit rating on Grab to '##-' from 'B+'. - The stable rating outlook reflects our view that Grab will sustain positive EBITDA and OCF, while maintaining a solid liquidity buffer and a prudent leverage level....

Research Update