Moody's: Whole Foods on review for upgrade

Moody's Investors Service said it placed all ratings on Whole Foods Market Inc. under review for upgrade, including the company's B1 rated $151 million of 5% zero-coupon convertible subordinated debentures due 2018 and Ba3 unsecured issuer rating.

Moody's does not rate the $100 million unsecured revolving credit facility.

Moody's said the review for upgrade was prompted by Whole Food's two-year pattern of internally financing its ambitious store development program from operating cash flow and equity issuance proceeds, the strong sales performance at new stores and existing locations, and continued improvements in debt protection measures.

Lease adjusted leverage of 2.1 times for the fiscal year ending September 2003 has improved from 2.2 times and 2.7 times in fiscal years 2002 and 2001, respectively, while fixed charge coverage has improved to 5.9 times from 5.2 times and 3.7 times over the same periods.

The company had cash of $166 million and total debt of $169 million on Sept. 28.

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