Walmart proposed note issuance gets AA rating from Fitch

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Walmart note issuance AA rating

Highlights

Walmart's proposed unsecured notes received an AA rating from Fitch, with proceeds earmarked for general corporate purposes, refinancing commercial paper, and debt maturities.
Fitch projects Walmart's long-term organic revenue growth at around 3% annually and expects over $4 billion in yearly free cash flow after $30 billion in capital spending and $8 billion in dividends.
Walmart's sector-leading scale, $713 billion in 2025 revenue, and omnichannel strategy position it for continued market share gains amid tariff and geopolitical headwinds, supported by $150 billion e-commerce sales and broad international earnings.

Debt use and rating rationale

As reported by Fitch Ratings, the proceeds from Walmart's proposed unsecured notes issuance are to be used for general corporate purposes, including refinancing commercial paper borrowings and upcoming debt maturities.

Fitch says Walmart's credit profile is supported by its dominant global retail position, a consistent financial strategy and stable EBITDAR leverage at or below 2x. The agency projects long-term organic annual revenue growth of around 3%, with comparable EBITDA growth, and says the company is handling volatile consumer sentiment and continuing cost pressures better than most peers.

Fitch also expects Walmart to keep generating substantial internal cash flow, with annual free cash flow averaging more than $4 billion after about $30 billion of annual capital spending and roughly $8 billion in dividends. The rating agency says liquidity remains solid, supported by cash generation and access to a commercial paper program partially backed by $15 billion in revolving credit facilities.

Retail scale and sector implications

Walmart remains the world's largest retailer, with $713 billion in 2025 revenue across more than 10,900 stores in 19 countries and e-commerce websites. Its sales mix is diversified, with just over half from groceries and the rest from general merchandise and health and wellness, while e-commerce sales reach $150 billion in 2025.

Fitch says Walmart's broad physical network, digital operations and data capabilities support its omnichannel strategy and continued market share gains. The company is investing in store remodels, supply chain infrastructure, AI, automation and customer service features such as self-checkout and simpler pickup operations to improve efficiency and customer experience.

Beyond its core U.S. discount and supercenter business, Walmart also has exposure to growth through Sam's Club, which posts $93 billion in 2025 revenue, and through international operations that generate $130 billion. Fitch says those businesses, including Walmart's stakes in Wal-Mart de Mexico and Flipkart and its wholly owned operations in Canada and China, add breadth to the retailer's earnings base as the U.S. retail sector faces tariff-related cost pressure and geopolitical uncertainty.

In our earlier coverage of Walmart’s inflation-driven momentum, we discussed how the retailer’s value proposition has been attracting more budget-conscious shoppers and supporting market share gains. We also noted expectations for incremental margin improvement from higher-margin businesses, automation, and expanding digital services, including AI-enabled shopping features that can lift basket size.

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