...June 17, 2021 MELBOURNE (S&P Global Ratings) June 18, 2021--S&P Global Ratings today said that the strength of Australia-based Woolworths Group Ltd.'s (###/Stable/A-2) supermarket operations will help it counter the effects of the demerger of its high-margin liquor and hotels division. Although we expect the demerger to reduce the group's scale and diversity, the quality of the group's remaining core supermarket operations remains strong and we expect the successful execution of Woolworths' operating strategy to replace the demerged earnings streams over the next few years. The slimmed down company, and more focused earnings base on the supermarket division, does not materially change our view of the group's robust earnings and cash flow quality. Woolworths' well-entrenched market position in the Australian supermarket industry, extensive scale, and hard to replicate network will continue to underpin its strong business risk profile. Although the liquor and hotels division--Endeavour Group--represented...
