Concerns are magnifying regarding Asda's financial stability, especially with a looming £900 million repayment to Walmart by 2028, which has raised alarms among credit rating agencies.
The repayment, comprising of £500 million for Walmart's stake and £400 million in interest, puts significant pressure on Asda's existing debt situation which has already seen a £185 million forecast downgrade.
Company chairman Allan Leighton expressed intentions to reverse Asda's sales decline, asserting that substantial investment is crucial in the next few years to enhance competitive pricing and stock availability.
An Asda spokesperson cited the company's strong cash generation capabilities, noting a significant leverage reduction as a sign of financial health, contrasting external concerns about debt repayment.
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