The stable outlook on Woolworths reflects our expectation that the group's investment in price, service, and systems will support a stabilization of market share and a return to satisfactory earnings growth over the near term, despite earnings and margin pressure. We consider the company to be committed to protecting credit quality at the 'BBB' rating level, and will actively manage its capital base to support credit quality if further earnings pressure occurs. We could lower the rating if there is continuing market share losses and margin erosion at Woolworths' core supermarket business, and an absence of credit-supportive capital management actions, sustain the group's debt to EBITDA above 3.6x and funds from operations (FFO)-to-debt ratio below 18%. Upside rating pressure would
