Fitch changes Costco to stable

Fitch Ratings said it affirmed Costco Wholesale Corp.’s issuer default rating at A+ and revised the outlook to stable from positive.

Costco had $6.1 billion of debt outstanding as of Nov. 22.

Costco's rating recognizes its position as the third largest food retailer in North American, its consistently strong comparable sales (comps), and the company's robust cash flow.

The outlook revision considers the potential for debt issuance to return cash to shareholders, which could keep leverage in the mid-1 time range, Fitch 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.