Fitch: Wesfarmers to positive

Fitch Ratings said it revised Wesfarmers Ltd.'s outlook to positive from stable and affirmed its long-term issuer default rating and senior unsecured rating at BBB+.

The outlook revision reflects the growing contribution from the company's defensive non-discretionary food retailer, Coles, Fitch said, and the company's improving financial profile.

The outlook may be revised to stable if the company's stated commitment to prudent capital management is weakened, leaving its lease-adjusted net debt-to-EBITDAR ratio in the 2.5x to 3.5x range, the agency said.

The ratings reflect Wesfarmers' revenue diversification, its portfolio of strong brands and leading market positions, Fitch said.

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