S&P boosts Block

S&P said it raised Block Inc.’s issuer credit and unsecured debt ratings to BB+ from BB. The agency also affirmed the unsecured debt recovery rating at 4, reflecting average recovery (30%-50%, rounded estimate: 45%) in default.

“The upgrade reflects Block's improving operating performance and clarity on achieving its rule of 40 target. S&P Global Ratings has a favorable view on Block prioritizing sustained profitability while prudently growing its ecosystems. We now expect the company to report positive operating income in 2024, which is in line with Block's guidance. For the third quarter ended Sept. 30, 2023, Block reported year-over-year gross profit growth of 21%, and adjusted operating income margin of 4.7%, for a total of 25.7%,” S&P said in a press release.

The outlook is stable.

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