Woolworths credit rating, profit forecasts cut as sales continue to slide

 In Australia, NewZealand, Woolworths
Woolworths shares slid 5 per cent on Wednesday after ratings agency Standard & Poor’s cut its credit rating and analysts trimmed profit forecasts by about 10 per cent in the wake of its declining food and general merchandise sales.
S&P lowered its long term credit rating one notch to BBB from BBB+, citing continued market share losses in Woolworths’ key food and liquor business, anticipated losses at BIG W, and Woolworths’ plan to invest an additional $150 million into reducing prices and improving service to restore sales growth in its supermarkets.
"As a result, we no longer expect the group to sustain its key credit measures and overall credit profile at levels consistent  with the BBB+ ratings," S&P credit analyst Paul Draffin said. Sydney Moring Herald – Read more…

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