MELBOURNE (S&P Global Ratings) Aug. 25, 2016--S&P Global Ratings today said that its ratings on Woolworths Ltd. (BBB/Stable/A-2) are not immediately affected by the group's proposed sale of its Home Improvement business and weak results for the year ended June 26, 2016. The group's key credit measures have deteriorated to the lower end of tolerances for the 'BBB' rating because of its weak earnings. Nevertheless, the company's earnings from continuing operations (before interest, tax, and significant items) of A$2,563.8 million was broadly in line with our expectations. This includes our reclassification of the A$700 million Woolworths Notes II hybrid instrument to debt after the company announced that it will redeem these notes in November 2016. Given the weak results and
