This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Feb. 21, 2024--We consider Australia and New Zealand retailer Woolworths Group Ltd. to be well positioned to navigate slowing consumer demand and a period of heightened political scrutiny over grocery pricing. Woolworths' (BBB/Stable/A-2) Australian Food division continues to underpin the group's credit quality. While we expect the slowdown in consumer demand to persist in coming months, and the group to continue to invest in grocery pricing against ongoing inflationary pressures, the recession-resistant nature of the group's food operations, advanced supply chain, and ongoing cost reductions should support modest earnings growth through 2024. We do not expect the change of leadership announced today to materially affect the group's growth
