S&P cuts Whole Foods to junk

Standard & Poor's said it lowered its corporate credit rating on Whole Foods Market Inc. to BB+ from BBB-.

At the same time, the agency said it removed the ratings from CreditWatch, where they were placed with negative implications on Feb. 22.

The action follows the company's acquisition of Wild Oats Markets Inc., S&P noted.

The outlook is negative.

According to S&P, the ratings reflect Whole Foods' strong business profile as the clear leader in the highly fragmented natural food retailing sector while this is partially offset by the company's credit measures that are weak for current ratings after the acquisition, its aggressive store growth plans and its small store base compared with much larger national players.

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