Moody's ups Whole Foods

Moody's Investors Service said it upgraded the corporate family rating for Whole Foods Market to Ba2 from Ba3 and maintained the positive outlook.

Moody's affirmed the $700 million senior secured term loan due 2012 at Ba2 (LGD 3, 46% from LGD 3, 47%).

The upgrade reflects the sustained improvement in operating results, strong comparable store sales growth, increased free cash flow and improved credit metrics resulting in reduced operating risk, Moody's said.

The positive outlook reflects the expectation that the company will maintain the upward momentum of improving operating performance and further improving credit metrics, the agency added.

The ratings reflect the company's moderate leverage, rapid growth and greater operating risk compared to conventional supermarkets due to the focus on specialty higher-end sustainable food products, Moody's said.

© 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.