DBRS confirms Walmart

DBRS said it confirmed Walmart Inc.’s issuer rating and senior unsecured debt rating, both at AA with stable trends, following Walmart’s announcement that it signed definitive agreements to become the largest shareholder in Flipkart Group.

Walmart will pay about $16 billion for an initial stake of about 77% in Flipkart, with the remainder held by some of Flipkart’s existing shareholders.

The company intends to finance the investment through a combination of newly issued debt and cash on hand.

DBRS said it believes the acquisition has a slightly positive effect on Walmart’s business risk profile as the company increases its geographic diversification and invests in higher-growth opportunities.

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