...MELBOURNE (Standard & Poor's) Oct. 30, 2015--Standard & Poor's Ratings Services said today that it has revised its rating outlook on Woolworths Ltd. to negative from stable. At the same time, we affirmed the '###+/A-2' ratings on the company and its related debt issues and programs. "The outlook revision reflects our view that Woolworths' forecast profit decline, due to accelerated price and service investment in the core supermarket operations, and challenging operating conditions in the group's nonfood businesses, could pressure the group's financial risk profile beyond tolerances for the '###+' rating in the next 1-2 years," said Standard & Poor's credit analyst Paul Draffin. On Oct. 29, 2015, Woolworths announced that its net profit after tax for six months ending Dec. 31, 2015, would be 28%-35% below the prior corresponding period's, reflecting intense competition in the Australian supermarket industry. Although the '###+' rating had anticipated significant price reinvestment and associated...
