S&P upgrades Whole Foods

Standard & Poor's said it raised its corporate credit rating on Whole Foods Markets Inc. to BB from BB-.

The outlook is stable.

Whole Foods' recent rebound in operating performance during 2010 marked by high-single-digit increases in identical-store sales and roughly 20% higher EBITDA has exceeded S&P's expectations. As a result of the recent performance trends, the agency expects a similar high-single-digit increase over the next two quarters.

The agency said the rating on Whole Foods reflects the company's aggressive financial risk profile, the increasingly competitive nature of the food retail industry and S&P's opinion that a large portion of the company's product offerings are discretionary in nature and thus vulnerable to weak economic conditions.

The company's recent rebound in operating performance and its position as the leader in the natural and organic food retailing sector only partly offset these risks, in the agency's view.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.