Grab Holdings Ltd.’s proposed acquisition of Atome Financial Singapore Pte. Ltd. will likely accelerate its growth in financial services, S&P Global Ratings said on Thursday.
The rating agency said in a note that the deal will add 25 million new users and a $1 billion gross loan portfolio. This expansion will require credit discipline to limit nonperforming loans, in our view.
S&P also believes Grab has a sufficient financial cushion for the transaction, considering it had about $6.3 billion in cash at the start of the third quarter of 2026.
“Coupled with our expectation that the company, Southeast Asia’s dominant mobility and delivery services business, will generate positive free cash flow over the next two years amid limited investment requirements, we expect Grab’s ample cash balance to anchor its credit quality,” said the rating agency.
Grab plans to take a 60 percent stake in Atome for $1.49 billion. The deal, announced on Tuesday, will help accelerate and bridge Grab’s direct consumer lending while potentially strengthening the company’s business competitiveness, in S&P view.
It opined that acquiring the buy-now, pay-later service reflects Grab’s strategic focus on deepening its financial services segment.
“We believe Grab’s greater ecosystem–with an existing 54 million monthly transacting users–will benefit from direct access to Atome’s business offerings, including buy-now, pay-later services and consumer financing,” it said.
S&P also noted heightened exposure to consumer credit risk and increased regulatory oversight as a result of the deal pose some credit risks.
Grab’s ability to manage nonperforming loans and maintain prudent balance sheet management would be key as Grab (BB/Positive/–) targets a $6 billion gross loan portfolio by 2028. This compares with $2.3 billion as of June 30, 2026.
“Grab’s recent corporate actions signal an increasing appetite for inorganic growth. Therefore, we continue to monitor its leverage tolerance and forecast it will have a debt-to-EBITDA ratio of 3x-4x over the next two years,” said S&P.
It is noted that the Atome acquisition is Grab’s third announced transaction this year, following its $600 million acquisition of Delivery Hero SE’s Foodpanda delivery business in Taiwan and $425 million purchase of a 100 percent stake in U.S.-based digital investing service Stash Financial Inc.
Atome is one of Southeast Asia’s top digital consumer financing and buy-now, pay-later service operators, with a significant presence in Singapore, Thailand, Malaysia, the Philippines, and Indonesia.
The transaction is subject to regulatory approvals, with target completion by the third quarter of 2027.
“The positive rating outlook on Grab reflects our expectation that the company will maintain its dominant position in mobility and deliveries services in Southeast Asia over the next 12-18 months,
“It also reflects our view that Grab, which has a net cash position, will maintain a conservative approach toward its financial management,” said S&P.
Maybank foresees Atome to contribute $200-$220M of EBITDA to Grab by 2028