ASDA - comment

S&P’s downgrade comes soon after Fitch and cites the same reason: the availability issues in Q3 caused by disruption post the break from the Walmart IT systems. We expect the UK market to remain very competitive while ASDA repositions itself. SUN/SSN holders will see further layering as the cash is raised on the asset portfolio at rates below the cost of bank debt. S&P sees liquidity as adequate. The drop in 2025 volumes at both Fitch and S&P is above our forecast, but the recovery rate is in line with our model.

 https://www.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/101661478