Moody's: Wesfarmers notes Baa1

Moody's Investors Service said it assigned a Baa1 senior unsecured rating to Wesfarmers Ltd.'s $650 million 2.983% fixed-coupon notes due May 18, 2016.

The proceeds of the Rule 144A bond issuance will be used to repay existing debt and for general corporate purposes.

The outlook is positive.

The senior unsecured notes feature customary terms and conditions for a Rule 144A issuance and currently receive indirect benefit - in the event of a cross acceleration - via bank debt covenants contained in the company's revolving bank facility and with which the notes are ranked pari passu, Moody's said.

The company has a significant exposure to the Australian retail sector following the acquisitions of Coles Group Ltd. in November 2007, the agency said.

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