S&P raises Grab Holdings

S&P said it raised its ratings for Grab Holdings Ltd. and its term loan to B from B-.

“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 agency said in a press release.

“The company's operating metrics have improved, and its negative EBITDA has also steadily narrowed. Its take rate (revenue as a proportion of gross merchandise value [GMV]) has risen for six consecutive quarters to 10.8% for the second quarter ending June 30, 2023. This compares with 2.7% for the fourth quarter of 2021,” S&P added.

The agency said it expects Grab to produce revenue growth of about 60% for 2023, to $2.3 billion, from $1.4 billion in 2022. “We expect revenue growth to be slower in 2024 at 20%-30%.”

The outlook is stable.

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