Research Update: Singapore-Based Grab Holdings Assigned 'B-' Rating With Stable Outlook; Senior Secured Loan Rated 'B-'

Grab Holdings Inc. (GHI) is likely to continue to face high competition in Southeast Asia and evolving regulations, increasing its operating costs and delaying a turnaround in operating performance. Meanwhile, we expect GHI's ample cash balance to support its losses and material cash burn over the next two to three years. The Southeast Asian ride-hailing, food delivery, and financial services platform operator could achieve positive EBITDA and operating cash flows from 2023, driven by disciplined spending and greater economies of scale. On Jan. 4, 2021, S&P Global Ratings assigned its 'B-' long-term issuer credit rating to GHI. We also assigned our 'B-' long-term issue rating to the senior secured U.S. dollar term loan B that a group of GHI's subsidiaries

...- Grab Holdings Inc. (GHI) is likely to continue to face high competition in Southeast Asia and evolving regulations, increasing its operating costs and delaying a turnaround in operating performance. - Meanwhile, we expect GHI's ample cash balance to support its losses and material cash burn over the next two to three years. The Southeast Asian ride-hailing, food delivery, and financial services platform operator could achieve positive EBITDA and operating cash flows from 2023, driven by disciplined spending and greater economies of scale. - On Jan. 4, 2021, S&P Global Ratings assigned its 'B-' long-term issuer credit rating to GHI. We also assigned our 'B-' long-term issue rating to the senior secured U.S. dollar term loan B that a group of GHI's subsidiaries will guarantee. - The stable outlook reflects our view that GHI should be able to withstand operating losses amid tough operating conditions and meet its financial obligations over the next 12 to 24 months, supported by its ample...

Research Update