S&P Global Ratings upgraded the credit rating of Uber Technologies (UBER.US) to investment grade on Friday, citing continued growth in the ride-hailing and food delivery company's profitability. In a statement, S&P said Uber's primary bond rating was raised from the highest junk level BB+ to the lowest investment grade BBB-. Investment-grade credit ratings can translate into lower borrowing costs for companies, as more investors are eligible to purchase higher-rated securities.

According to S&P data, the company is expected to achieve approximately $5.9 billion EBITDA - a key profitability indicator - by 2024 and reach $7.6 billion by 2025. S&P said that despite the increase in revenue, the company remains conservative in borrowing and has publicly stated its desire to maintain an investment-grade credit rating. S&P said Uber's financial discipline and cash flow position it favorably to use capital for acquisitions and other ways to increase shareholder returns.

In February of this year, Moody's Rating agency raised Uber's primary bond rating from B1 to Ba1, which is the highest rating of junk bond, raising it by three levels. According to data, as of the end of June, Uber had approximately $11.1 billion of short-term and long-term debt, including bonds and lease obligations.