Mercado Libre Achieves Full Investment Grade Rating with S&P’s upgrade to ‘BBB-’
Mercado Libre (NASDAQ:MELI), Latin America's leading e-commerce and fintech platform, has achieved full investment grade status after S&P Global Ratings upgraded its rating to 'BBB-' with a Stable Outlook. This follows Fitch Ratings' upgrade in October 2024.
S&P's upgrade from 'BB+' highlights MELI's strong operating performance, improving profitability, and conservative balance sheet with debt-to-EBITDA expected below 2.0x and debt-to-tangible equity below 1.0x. The rating reflects the strength of MELI's integrated ecosystem across marketplace, logistics, fintech, and advertising, particularly in key markets like Brazil and Mexico.
Mercado Libre (NASDAQ:MELI), la principale piattaforma di e-commerce e fintech dell'America Latina, ha raggiunto lo status di investimento a pieno titolo dopo che S&P Global Ratings ha migliorato il suo rating a 'BBB-' con Outlook stabile. Questo segue l'upgrade di Fitch Ratings di ottobre 2024.
L'upgrade di S&P da 'BB+' evidenzia la forte performance operativa di MELI, la sua redditività in miglioramento e un bilancio prudente con un rapporto debito/EBITDA previsto sotto 2,0x e un rapporto debito/patrimonio tangibile sotto 1,0x. Il rating riflette la solidità dell'ecosistema integrato di MELI che comprende marketplace, logistica, fintech e pubblicità, soprattutto in mercati chiave come Brasile e Messico.
Mercado Libre (NASDAQ:MELI), la principal plataforma de comercio electrónico y fintech de América Latina, ha alcanzado el estatus de grado de inversión tras que S&P Global Ratings mejoró su calificación a 'BBB-' con una Perspectiva Estable. Esto sigue a la mejora realizada por Fitch Ratings en octubre de 2024.
La mejora de S&P desde 'BB+' destaca el fuerte desempeño operativo de MELI, la mejora en su rentabilidad y un balance conservador con una deuda sobre EBITDA esperada por debajo de 2.0x y deuda sobre patrimonio tangible por debajo de 1.0x. La calificación refleja la fortaleza del ecosistema integrado de MELI que abarca marketplace, logística, fintech y publicidad, especialmente en mercados clave como Brasil y México.
Mercado Libre (NASDAQ:MELI)는 라틴 아메리카를 선도하는 전자상거래 및 핀테크 플랫폼으로, S&P 글로벌 레이팅이 등급을 'BBB-'로 상향 조정하고 안정적 전망을 부여하면서 완전한 투자 등급을 달성했습니다. 이는 2024년 10월 Fitch Ratings의 상향 조정에 이은 것입니다.
S&P의 'BB+'에서 상향 조정은 MELI의 강력한 운영 실적, 개선되는 수익성, 그리고 보수적인 재무구조(부채 대비 EBITDA 비율 2.0배 미만, 부채 대비 유형자본 비율 1.0배 미만)를 강조합니다. 이 등급은 브라질과 멕시코 같은 주요 시장에서 마켓플레이스, 물류, 핀테크, 광고를 아우르는 MELI의 통합 생태계의 강점을 반영합니다.
Mercado Libre (NASDAQ:MELI), la principale plateforme de commerce électronique et de fintech d'Amérique latine, a atteint le statut d'investissement de qualité après que S&P Global Ratings a relevé sa note à 'BBB-' avec une perspective stable. Cela fait suite à la révision à la hausse de Fitch Ratings en octobre 2024.
La montée en gamme de S&P depuis 'BB+' met en avant la forte performance opérationnelle de MELI, l'amélioration de sa rentabilité et un bilan prudent, avec un ratio dette/EBITDA attendu en dessous de 2,0x et un ratio dette/fonds propres tangibles inférieur à 1,0x. Cette notation reflète la solidité de l'écosystème intégré de MELI, couvrant la place de marché, la logistique, la fintech et la publicité, notamment sur des marchés clés comme le Brésil et le Mexique.
Mercado Libre (NASDAQ:MELI), Lateinamerikas führende E-Commerce- und Fintech-Plattform, hat den vollen Investment-Grade-Status erreicht, nachdem S&P Global Ratings seine Bewertung auf 'BBB-' mit stabilem Ausblick angehoben hat. Dies folgt auf die Heraufstufung durch Fitch Ratings im Oktober 2024.
Die Heraufstufung von S&P von 'BB+' unterstreicht MELIs starke operative Leistung, verbesserte Profitabilität und konservative Bilanz mit einem erwarteten Verschuldungsgrad (Debt-to-EBITDA) von unter 2,0x und einer Verschuldung im Verhältnis zum materiellen Eigenkapital von unter 1,0x. Die Bewertung spiegelt die Stärke des integrierten Ökosystems von MELI wider, das Marktplatz, Logistik, Fintech und Werbung umfasst, insbesondere in wichtigen Märkten wie Brasilien und Mexiko.
- Achieved full investment grade status with S&P upgrade to 'BBB-', following Fitch's upgrade in 2024
- Strong balance sheet metrics with debt-to-EBITDA below 2.0x and debt-to-tangible equity below 1.0x
- Enhanced access to global capital markets and improved financial standing
- Demonstrated consistent growth across business lines with improving profitability
- None.
Insights
S&P's upgrade to investment grade strengthens MELI's financial position, reducing borrowing costs and enhancing market confidence.
Mercado Libre's second investment grade rating represents a significant financial milestone. With both S&P and Fitch now rating the company at investment grade levels, MELI gains access to broader institutional investor pools and typically lower borrowing costs - a meaningful advantage in the current interest rate environment.
The rating agencies specifically highlighted several strengths behind this upgrade: debt-to-EBITDA below 2.0x, debt-to-tangible equity below 1.0x, and consistent profitability improvements alongside growth. These conservative financial metrics demonstrate management's disciplined capital allocation despite operating in emerging markets.
S&P's upgrade from 'BB+' to 'BBB-' validates MELI's integrated ecosystem strategy, combining e-commerce, logistics, fintech, and advertising. This vertical integration creates multiple revenue streams while reinforcing competitive moats against both regional and global competitors. The upgrade particularly recognizes MELI's success in Brazil and Mexico, its largest markets.
The timing is especially favorable as many companies struggle with debt management. For MELI, this upgrade translates to enhanced financial flexibility - whether for accelerating growth initiatives, pursuing strategic acquisitions, or weathering potential economic volatility in Latin America. This financial validation should strengthen stakeholder confidence in the company's long-term trajectory.
Mercado Libre now holds investment grade ratings from two leading agencies with S&P following Fitech's upgrade in October 2024
MONTEVIDEO, July 11, 2025 (GLOBE NEWSWIRE) -- Mercado Libre, the leading e-commerce and fintech platform in Latin America, announces that S&P Global Ratings has upgraded its rating to investment grade ‘BBB-’, with a Stable Outlook. This marks the second major credit agency assigning an investment grade rating to Mercado Libre, following a similar action by Fitch Ratings in October 2024, making Mercado Libre a full investment grade rating company.
In its report, S&P highlighted Mercado Libre’s strong operating performance and improving profitability. It also highlighted the company's conservative balance sheet and noted its ability to sustain solid credit metrics with debt to EBITDA expected to remain below 2.0x and debt-to-tangible equity below 1.0x. The rating also reflects the strength of Mercado Libre’s vertically integrated ecosystem, including its marketplace, logistics, fintech, and advertising businesses, as well as its market leadership across key countries in Latin America such as Brazil and Mexico.
“This second investment grade rating—from S&P, following Fitch’s upgrade last year—affirms the strength of our ecosystem, our disciplined execution, and the consistency of our growth,” said Martín de los Santos, CFO of Mercado Libre. “As Latin America’s leading e-commerce and fintech platform, we’re proud to compete with global players while remaining committed to our mission of democratizing access to commerce and financial services across the region.”
The S&P upgrade from ‘BB+’ to ‘BBB-’ underscores Mercado Libre’s enhanced financial and operational performance, as well as its ability to sustain momentum at a higher credit quality. Over the past several years, the company has delivered steady and substantial growth across its business lines, fueled by a growing user base in Commerce and Fintech, investments in shipping and the build-out of a full digital account product stack. This has led to market share gains as the company successfully drives offline retail online and democtrazises access to financial services—particularly in Brazil, Mexico, and Chile.
Both S&P and Fitch have pointed to the company’s expanding fintech operations, growth in its credit portfolio, and continued investment in logistics infrastructure as key drivers of long-term potential. Fitch previously cited Mercado Libre’s successful track record of combining growth with profitability, as well as its diversified business model, as reasons behind its upgrade in October 2024.
With this second investment grade rating, Mercado Libre further strengthens its standing in global capital markets, reflecting high confidence in its growth trajectory, risk management, and long-term strategic vision.
S&P Global Rating action commentary is available here: https://www.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/101634102
About Mercado Libre
Founded in 1999, MercadoLibre, Inc (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at http://investor.mercadolibre.com/
Janelle Laignelet jlaignelet@milltownpartners.com
FAQ
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