Following a disappointing third quarter trading update from Woolworths (ASX: WOW) on Wednesday, Standard & Poor’s downgraded the company’s credit rating due to weak earnings and intense competition in the market. The ratings agency lowered Woolworths’ long-term debt rating from BBB+ to BBB, although its outlook was lifted from ‘negative’ to ‘stable’ as a consequence; leaving the group just two levels above a junk rating. Shares in Woolworths soured following the announcement, and closed down 4.1% for the week. We do not own Woolworths in the investment portfolio.
Established in 1997 by Geoff Wilson, we are an independently owned investment manager based in Sydney. Today, Wilson Asset Management is comprised of ten investment professionals who offer a combined investment experience of almost 100 years.