Asda is at risk of being forced to refinance its multi-billion pound debt pile ahead of a steep repayment owed to former owner Walmart.

The supermarket’s looming £900m bill due by 2028 could threaten the chain’s entire capital structure, according to credit rating agency Fitch.

Fitch said Asda may need to refinance in order to repay the debt, which consists of £500m for Walmart’s remaining stake and £400m in interest.

The grocer, whose debt sits around £6bn, refinanced £3.2bn of its borrowings in May that helped delay its repayments until the next decade.

An Asda spokesman told The Telegraph: “We acknowledge Fitch’s view; however, it should be noted this reflects their opinion and is not a statement of fact.

“Asda continues to take a disciplined and proactive approach to managing its debt obligations. Earlier this year, we successfully refinanced more than £3.2bn, a move that demonstrated robust investor confidence in the business and pushed the majority of our maturities well into the next decade.

“Asda is a highly cash-generative business with a strong and stable capital structure, enabling us to invest in our colleagues and new customer propositions while simultaneously reducing leverage, which has decreased from x4.1 to x3.0 over the last 18 months.

“Asda’s net debt at the end of Q3 2024 was £3.8bn – a £100m reduction on the previous quarter – and the business is committed to deleveraging.”

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