S&P rates Woolworths notes A-

Standard & Poor's said it assigned an A- long-term rating to Woolworths Ltd.'s (A-/stable/A-2) unlimited domestic medium-term-note program and the initial A$500 million issue from the program.

The A$500 million of 6.75% notes, which has a tenor of five years maturing on March 22, 2016, ranks pari passu with all of Woolworths' existing senior-unsecured debt, the agency said.

Proceeds from the notes are expected to be used for general corporate purposes and the repayment of maturing notes.

Woolworths' credit profile is underpinned by significant market positions in Australian and New Zealand supermarket retailing, the agency said.

Woolworths' market-leading cost position in Australian supermarkets provides a significant competitive advantage, supported by the group's supply-chain efficiency, the agency added.

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