Moody’s: Woolworths unaffected

Moody's Investors Service said that Woolworths Ltd.’s Baa1 issuer and senior unsecured ratings, and their negative outlook, are unaffected at present by Woolworths' exercise of its call option on Lowe's Cos., Inc.'s 33.3% interest in Hydrox Holdings Pty Ltd. (unrated).

The transaction would see Woolworths owning 100% of its home improvement businesses, which include Masters and Home Timber & Hardware.

"The lack of clarity on the timing, cash amounts involved in the transaction, and the planned exit of Woolworths from the Home Improvement segment, mean that the rating implications remain unclear at this juncture," Moody's vice president and senior analyst Ian Chitterer said in a news release.

"Moreover, we view the performance of the Australian food & liquor segment to remain the single-most important driver of Woolworths' rating."

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