BJ’s Wholesale Club Receives First-Time Investment Grade Rating from Fitch

Key Terms

long term issuer default rating financial

A long-term issuer default rating is an independent grade assigned by a credit agency that estimates the likelihood a borrower—such as a company or government—will fail to pay its debts over the coming years. It matters to investors because it works like a safety score: higher ratings signal lower risk and usually cheaper borrowing costs, while lower ratings warn of greater default risk, helping investors compare creditworthiness before lending or buying bonds.

investment grade financial

A credit rating label assigned to bonds or borrowers that signals relatively low risk of default; think of it as a strong health check for a company's or government's ability to repay debt. It matters to investors because investment-grade status typically means lower interest costs for the borrower, greater eligibility for conservative funds and pension portfolios, and generally more stable returns compared with higher-risk, non-investment-grade debt.

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abl revolving credit facility financial

ABL revolving credit facility is a line of borrowing a company can draw and repay repeatedly that is secured by its assets such as inventory, accounts receivable or equipment. Think of it like a business credit card whose limit changes with the value of the pledged assets; it matters to investors because it determines a company’s short‑term cash flexibility, borrowing cost and risk of forced repayment if the asset values or loan terms change.

secured term loan financial

A secured term loan is a bank or investor loan with a set repayment schedule and interest, backed by specific company assets that the lender can claim if payments stop—think of it like a mortgage on a business asset. It matters to investors because it sits higher in the company’s payment order than equity, reducing lender risk but adding fixed cash obligations that affect free cash flow, leverage and the likelihood of losses for shareholders if the company struggles.

stable outlook financial

A stable outlook is a credit-rating agency’s view that a company’s credit rating is unlikely to change over the medium term, indicating expected steadiness in its financial condition and ability to meet obligations. For investors it matters because a stable outlook signals lower likelihood of sudden changes to borrowing costs, dividend capacity or default risk—like a calm weather forecast, it helps set expectations about near-term risk and return.

ebitdar leverage financial

EBITDAR leverage measures how many years of a company’s operating cash — calculated before interest, taxes, depreciation, amortization and rent — would be needed to pay off its net debt, usually shown as net debt divided by EBITDAR. Investors use it like checking how many paychecks are required to retire a loan, helping assess credit risk and compare firms with different rent or lease burdens without mixing in non-cash or rent costs.

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MARLBOROUGH, Mass.--(BUSINESS WIRE)-- BJ’s Wholesale Club (NYSE: BJ) today announced that Fitch Ratings has assigned a first-time Long Term Issuer Default Rating of ‘BBB’ to the company. Fitch has also assigned BBB+ ratings to the company’s ABL revolving credit facility and secured term loan due 2029. The ratings carry a Stable Outlook.

"Fitch’s investment-grade ratings reflect BJ’s continued growth and commitment to financial discipline,” said Laura Felice, Chief Financial Officer, BJ’s Wholesale Club. “We are proud of the progress we've made in growing our business and strengthening our balance sheet as we deliver unbeatable value and convenience to our more than 8 million members in 22 states."

Fitch’s rating reflects BJ’s strong positioning in the growing U.S. warehouse club sector, a loyal membership with 90% tenured renewal rate and consistent growth in comparable store sales and EBITDA. The rating also reflects the company’s positive cash generation and modest EBITDAR leverage.

BJ’s Wholesale Club Holdings, Inc.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading operator of membership warehouse clubs focused on delivering significant value to its members and serving a shared purpose: “We take care of the families who depend on us.” The company provides a wide assortment of fresh foods, produce, a full-service deli, fresh bakery, household essentials, various exclusive offerings, gas and more to deliver unbeatable value to smart-saving families. Headquartered in Marlborough, Massachusetts, the company pioneered the warehouse club model in New England in 1984 and currently operates 267 clubs and 205 BJ's Gas^® locations in 22 states. For more information, please visit us at BJs.com or on Facebook, or Instagram.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2026 outlook; the timing and amounts of any share repurchases under our current authorized share repurchase program; and our strategic priorities and future progress, as well as statements that include the words “expect,” “intend,” “plan,” “confident,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “can” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: uncertainties in the financial markets, including, without limitation, as a result of disruptions and instability in the banking and financial services industries or as a result of wars and global political conflicts, consumer and small business spending patterns and debt levels; our dependence on having a large and loyal membership; domestic and international economic conditions, including volatility in inflation or interest rates, supply chain disruptions, construction delays and exchange rates; our ability to procure the merchandise we sell at the best possible prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant digital experience for our members; risks related to our growth strategy to open new clubs; risks related to our e-commerce business; our ability to grow our BJ’s One Mastercard^® program; and other important factors discussed under the caption “Risk Factors” in our Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 12, 2026, and subsequent filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260522819686/en/

Media:
Kirk Saville
Head of Corporate Communications
BJ’s Wholesale Club
ksaville@bjs.com
774-512-5597

Source: BJ’s Wholesale Club