Research Update: Mars Inc. Ratings Raised To 'A+' From 'A' On Continued Strong Performance And Cash Flow; New Debt Rated

We forecast U.S.-based Mars Inc. to continue to increase its scale through acquisitions with minimal deterioration of credit metrics. Mars reported strong operating results for fiscal 2022, despite extraordinary inflationary pressures. Since 2018, the company's revenues have grown by about $10 billion from organic growth and acquisitions. Therefore, we raised all of our ratings on the company, including the issuer credit rating to 'A+' from 'A', as a result of its increased scale, solid operating performance, and strong cash flow generation. The Mars' family ownership has allowed the company to reinvest most of its cash flow into the business versus funding large shareholder returns, which we believe supports a higher rating, despite sizable ongoing acquisitions. Concurrent with the upgrade, we

...- We forecast U.S.-based Mars Inc. to continue to increase its scale through acquisitions with minimal deterioration of credit metrics. Mars reported strong operating results for fiscal 2022, despite extraordinary inflationary pressures. Since 2018, the company's revenues have grown by about $10 billion from organic growth and acquisitions. - Therefore, we raised all of our ratings on the company, including the issuer credit rating to 'A+' from 'A', as a result of its increased scale, solid operating performance, and strong cash flow generation. The Mars' family ownership has allowed the company to reinvest most of its cash flow into the business versus funding large shareholder returns, which we believe supports a higher rating, despite sizable ongoing acquisitions. - Concurrent with the upgrade, we assigned our 'A+' issue-level ratings to the company's proposed $2.5 billion 144A private placement senior unsecured notes (final tranches and maturities to be finalized). Approximately $500...

Research Update