S&P Global Ratings announced the upgrade of Uber Technologies Inc.’s credit ratings to investment-grade status, citing the company’s consistent earnings growth. Uber’s main bond ratings were raised to BBB-, the lowest investment-grade level, from BB+, the highest junk grade. This upgrade signifies lower borrowing costs for Uber as a wider range of investors can now purchase high-grade securities.
According to S&P, Uber is projected to achieve approximately $5.9 billion in Ebitda in 2024 and $7.6 billion in 2025. Despite its growing income, Uber remains cautious about borrowing and has expressed a commitment to maintaining an investment-grade credit profile. The company’s financial discipline and strong cash flow position it well to pursue acquisitions and enhance shareholder returns.
Moody’s Ratings also upgraded Uber’s main bond rating to Ba1, the highest junk level, from B1 in February. As of the end of June, Uber’s total debt, including bonds and lease liabilities, amounted to approximately $11.1 billion.
This data was compiled by Bloomberg.
