DBRS confirms Costco at A (high)

DBRS said it confirmed the issuer rating and senior unsecured debt rating of Costco Wholesale Corp. at A (high) and its short-term issuer rating at R-1 (low), all with stable trends.

“The confirmations reflect Costco’s steady revenue and EBITDA growth and incorporate higher leverage as a result of the company’s recently debt-funded special dividend,” the agency said in a news release.

“The ratings continue to be supported by the company’s large size, strong market position, efficient operations, relative resilience to economic cycles and the benefits associated with its warehouse membership business model.”

DBRS added that the ratings also consider the increasingly competitive retail industry, risks associated with geographic expansion and the potential for less conservative financial management.

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