S&P lifts Walmart view to stable

S&P said it revised Walmart Inc.'s outlook to stable from negative and affirmed the AA long-term and A-1+ short-term issuer credit rating and AA issue-level ratings.

Walmart continues to demonstrate solid profitability trends especially in the United States, offsetting higher debt from its Flipkart transaction last year, the agency said.

The stable outlook reflects our view that investments in digital brand expansion and brick-and-mortar remodels are driving market share gains globally, with potential for gradual debt reduction over the next few years.

The outlook revision also considers that Walmart's U.S. business will continue to drive ahead of challenged retail peers this year, offsetting modest margin erosion from online fulfillment cost increases, S&P 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.