Uber Technologies' Credit Rating Upgraded to 'BBB' by S&P as Cash Flow Improves

Investing.com -- The credit rating of Uber Technologies Inc., a delivery and logistics technology platform based in the U.S., has been upgraded from 'BBB-' to 'BBB' by S&P Global Ratings, reflecting improvements in credit metrics and free operating cash flow (FOCF). In 2024, Uber is expected to show healthy gross bookings and earnings growth, making progress towards its three-year financial model targets. The company's focus on profitable growth and a cautious investment strategy is anticipated to support strong EBITDA and FOCF growth in the coming one to two years.

S&P Global Ratings projects that Uber's adjusted FOCF will exceed $5.5 billion in 2025, with a debt/EBITDA ratio falling below 1x. The upgrade is backed by solid business performance and balanced investments that will support earnings growth in 2025 and 2026, providing Uber with the flexibility to pursue new business strategies without straining its credit rating.