DBRS rates Walmart notes AA

DBRS said it assigned a rating of AA with a stable trend to Walmart Inc.’s $16 billion of new debt in nine tranches.

The notes will be senior unsecured debt obligations and will rank equally with Walmart’s outstanding senior unsecured debt, the agency said.

The company intends to use a portion of the net proceeds from the sale of the notes to fund a portion of the purchase price for the acquisition of the Flipkart Group and for general corporate purposes.

Walmart previously signed definitive agreements to become the largest shareholder in Flipkart and agreed to combine Walmart’s wholly owned U.K. retail subsidiary, ASDA Group Ltd., with J Sainsbury plc.

The agency said it believes the combination of Asda and Sainsbury’s does not have a material impact on Walmart’s credit risk profile due to Asda’s relatively small size in relation to Walmart’s overall operations and the fact that the company will retain a meaningful stake in the combined entity.

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