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Bulletin: Costco Wholesale Corp. Ratings Unaffected By Fourth-Quarter Earnings Announcement Jul 08
Standard & Poors, July 2008
Abstract
NEW YORK (Standard & Poor's) July 23, 2008--Standard & Poor's Ratings Services said today that Costco Wholesale Corp.'s (A/Stable/A-1) announcement that its fourth-quarter earnings will be well below the current consensus earnings per share estimate of $1.00 has no current effect on the company's current credit rating or outlook. At the same time, Issaquah, Wash. based-Costco said that it has increased its share repurchase authorization by $1 billion. In spite of these factors, we still expect Costco to maintain adequate credit metrics and liquidity for the rating category. The company said that the earnings shortfall will primarily be a result of declining margins from inflationary pressures, as it maintained its low prices. We calculate that last-12-month lease-adjusted leverage was at...
Companies mentioned in this report are: Costco Wholesale Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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