GLOBAL RATINGS
Woolworths faces possible further S&P downgrade
The drop in profitability caused by the weak performances in Woolworths’ non-food businesses in Australia and SA prompted the downgrade
S&P Global Ratings said on Tuesday it could downgrade southern hemisphere retailer Woolworths again if its position in the nonfood markets in SA and Australia weakens further. The ratings agency was commenting after announcing it had downgraded its rating on Woolworths from AA, which means it has a strong capacity to meet its financial commitments, to one notch below A+, which means the retailer has a strong capacity to meet its financial commitments but is susceptible to adverse economic conditions and changes in circumstances. On S&P’s scale BBB and above is investment grade. The drop in profitability caused by the weak performances in Woolworths’ non-food businesses in Australia and SA prompted the downgrade. "Woolworths Holdings continues to face challenging macroeconomic and trading conditions in SA and intense competitive pressure and structural changes in Australia," said the ratings agency. Last month the retail chain, a favourite among upper-income consumers in SA, reported...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.