Fitch rates Walmart notes AA

Fitch Ratings said it assigned an AA rating to Walmart, Inc.'s proposed issuance of senior unsecured notes, which Fitch believes could be up to $15 billion.

The proceeds will be used to partially fund the company's proposed $16 billion investment in Indian e-commerce retailer Flipkart Private Ltd., Fitch said, and for general corporate purposes, including refinancing existing debt.

Walmart's ratings reflect its dominant retail market share position with more than $500 billion of annualized revenue, positive comparable store sales trend, substantial cash flow and consistent financial strategy, the agency said.

Fitch said it projects organic annual revenue growth in the low single-digit range and relatively flat EBITDA as growth in the U.S. retail business offsets losses at Flipkart.

Walmart continues to strengthen and leverage its core North American business while restructuring its international portfolio of assets to prioritize high growth markets, such as China and India, the agency said.

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