S&P lowers Woolworths view to negative

Standard & Poor’s said it revised the outlook on Woolworths Ltd. to negative from stable.

The agency also said it affirmed the BBB+ and A-2 ratings on the company and its related debt issues and programs.

The outlook revision reflects the company’s forecasted profit decline due to accelerated price and service investment in its core supermarket operations, S&P said.

The negative outlook also considers challenging operating conditions in the group’s non-food businesses, which will pressure the group’s financial risk profile beyond tolerances for the BBB+ rating in the next one to two years, the agency said.

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