Woolworths credit rating cut by Moody’s

Moody’s has downgraded Woolworths’ credit rating to Baa2 from Baa1, citing the supermarket owner’s "continued operational challenges across much of its portfolio".
With Woolies’ rating now only two notches above "junk" rating, Moody’s also maintained its negative outlook, meaning it could face further downgrades if its sales deteriorate further.
"The trend in comparable-store sales growth at its core Australian food and liquor business has been negative for the past three quarters and Woolworths does not expect a significant improvement in the [second half of this financial year]," a Moody’s analysts said in a statement. Sydney Morning Herald – Read more…