HomeNewsSupermarket TrendsMoody’s Increases Asda Rating to B1 from B2 on Strong FY23 Results

Moody’s Increases Asda Rating to B1 from B2 on Strong FY23 Results

After a strong financial performance during FY23, the UK supermarket giant Asda has been given a significant boost with its corporate rating being raised by Moody’s to B1 from B2. In the same period, the company improved its adjusted EBITDA after rent by 24% at £1.1bn and like-for-like sales went up by 5.4%.

This upgrade was due to Asda’s robust financial performance according to Moody’s who noted reduced leverage and growth in underlying free cash flow as key factors. The supermarket revealed that underlying free cash flow surged 31% YoY for FY23 trading update to £776m while total leverage dropped down to 3.0x from 3.9x adjusted EBITDA after rent.

Also Moody’s said refinancing will have a positive effect on future leverage for Asda.

Moody’s upgrade was welcomed by Michael Gleeson, the Chief Financial Officer of Asda who attributed it to the strong results achieved by the company in FY23. He reiterated that they had a sound capital structure which allowed them deliver value for customers and make strategic acquisitions for growth while at the same time serving colleagues as well as local communities with an aim of setting foundation for sustainable success over long term.

Read About: Woolworths Offers Affordable, Restaurant-Style Meals For Convenient Dining At Home

Get the latest news directly to your inbox