×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.