Standard & Poor's: Uber (UBER.US) maintains its profit growth, raising its rating to investment grade

Standard & Poor's Ratings Global upgraded Uber Technologies Inc. (UBER.US) to an investment grade on Friday, citing the ride-hailing and food delivery company's sustained profitability growth. The rating agency said Uber's primary bond rating was raised from the highest junk grade of BB+ to the lowest investment grade of BBB-.

An investment-grade credit rating can translate into lower borrowing costs for a company, as more investors are eligible to buy high-rated securities. Uber is expected to achieve about $5.9bn of Ebitda, a key profitability measure, in 2024 and $7.6bn in 2025, according to S&P data. The company remains conservative on its borrowing and has publicly stated it wants to maintain an investment-grade credit rating, S&P said, despite revenue growth. S&P said Uber's financial discipline and cash flow put it in a position to use capital for acquisitions and other ways to boost shareholder returns.

Uber's main bond rating was raised to Ba1 by Moody's in February, three levels up from B1, the highest junk rating. As of the end of June, Uber had about $11.1bn in short- and long-term debt, including bonds and lease liabilities, according to data.