Woolworths credit rating downgraded

Moody’s has downgraded supermarket giant Woolworths outlook to negative from stable. The ratings agency lowered the outlook based on Woolworths’ dwindling sales across its food and liquor business with sales expected to be volatile over the next 12 to 18 months as shelf prices come under increasing downward pressure. Moody’s also said Woolworths’ credit profile has continued to deteriorate over the past year due to the under performance of its food and liquor, general merchandise and home improvement departments. Last week Woolworths CEO Grant O’Brien announced his retirement and the company announced it would cut 1,200 jobs nationally and issued a profit warning.