Strong market position in the relatively concentrated supermarket and liquor retailing sector in Australia and New Zealand Strong and growing competition in the Australian supermarket sector, which is significantly eroding profit margins Execution risks associated with the group's turnaround strategy in supermarkets and planned exit from the home improvement sector Near-term financial risk profile to be outside expectations for the 'BBB+' rating Improving financial risk profile reliant on both a return to earnings growth and credit-supportive capital-management initiatives Substantial use of off-balance-sheet operating lease finance, tempered by modest levels of on-balance-sheet debt Large, ongoing capital-expenditure requirements The negative outlook reflects the challenging operating outlook facing the Woolworths Ltd. group as it seeks to regain sales momentum and market share in
