Fitch rates Walmart notes AA

Fitch Ratings said it assigned an AA rating to Walmart, Inc.'s proposed issuance of five-, seven- and 10-year senior unsecured notes.

Fitch said it believes the issues could total $3 billion.

The proceeds will be used for general corporate purposes, including refinancing existing debt, the agency said.

The ratings reflect the company's dominant global retail market share position with more than $514 billion of revenue in 2018, a positive comparable store sales trend, substantial cash flow and consistent financial strategy, Fitch said.

The company's total adjusted debt-to-EBITDAR is expected to decline to 2x over the next two- to three-years, from 2.3x in 2018 as Walmart uses free cash flow to reduce debt following the debt-financed Flipkart transaction in 2018, the agency explained.

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, Fitch said.

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