MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services lowered its
corporate credit rating on Whole Foods Market Inc to 'BB+' from 'BBB-' after the
company bought Wild Oats Markets Inc.
The outlook is negative.
Whole Foods has entered into a five-year 700 mln usd senior term loan to
finance the acquisition and has also signed a five-year 250 mln usd revolving
credit agreement.
"Following the acquisition... Whole Foods' outstanding lease-adjusted debt
balance is expected to increase significantly," S&P noted.
Thus, the agency expects pro forma credit metrics to deteriorate
significantly and only gradually recover as the company starts to recognize
synergies from the acquisition.
TFN.newsdesk@thomson.com
jro
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