Moody’s drops Woolworths view to negative

Moody's Investors Service said it affirmed Woolworths Ltd.’s A3 ratings and changed the outlook to negative from stable. The ratings affirmed include the A3 issuer rating, senior unsecured notes, and provisional A3 medium-term note program ratings.

"The change in outlook to negative from stable reflects the continued material negative trend in comparable store sales across the Australian Food and Liquor business, the core business supporting the company's ratings," Moody's vice president and senior analyst Ian Chitterer said in a news release.

"The negative outlook also reflects our expectation that comparable store sales will likely continue to be volatile over the next 12-to-18 months as Woolworths transformation plans are actioned in an environment where its shelf prices are likely to come under increasing downward pressure."

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