S&P lifts Wesfarmers to stable

S&P said it revised the outlook on Wesfarmers Ltd. to stable from negative.

The agency also said it affirmed the long-term and short-term corporate credit ratings and related issue ratings on the company at A- and A-2.

The ratings reflect the company's improved credit metrics in fiscal 2017 and an expectation that the company's operating strategy will be unchanged, S&P said.

Management's commitment to maintain a diversified business model with a retail emphasis supports the A- rating, the agency said.

The company's growing earnings in its established Australian businesses and its debt-reduction initiatives have combined to improve credit metrics to be consistent with expectations, S&P explained.

Although the group has solid positions in several key market segments, its strong business risk profile reflects primarily the strength of its supermarket and home improvement retailing operations, the agency added.

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