Woolworths’ credit rating cut

Standard & Poor’s slapped Woolworths with a rating downgrade today. It’s less worrying than the share price reaction suggests.

Yesterday, Woolworths’ share price was saved by the Reserve Bank’s interest rate cut. By contrast, today’s decision by Standard & Poor’s to downgrade Woolworths credit rating has caused it to fall 7%. Some of this decline is probably a delayed reaction to yesterday’s sales announcement.

Credit rating downgrades do have a real impact because they generally mean a company will pay a higher interest rate on its debt. But they’re rarely worth worrying about unduly.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles