Bulletin: Costco Wholesale Corp. Ratings Unaffected By Q2 Profit Warning Feb 09
- ID: 1826991
- February 2009
- Standard & Poors
NEW YORK (Standard & Poor's) Feb. 4, 2009--Standard & Poor's Ratings Services said today that its ratings on Costco Wholesale Corp. (A/Stable/A-1) remain unchanged following the company's announcement that its profits for the second quarter ending Feb. 15, 2009, will be substantially below consensus estimates. Economic weakness, coupled with aggressive merchandise pricing, lower gasoline profits, and strengthening of the U.S. dollar hurt Costco's sales and margins during the second quarter. Although Costco did not provide earnings guidance for the rest of the fiscal year, Standard & Poor's believes that the company's credit metrics will remain adequate for the rating category even if EBITDA declines 22% from fiscal 2008 levels, assuming debt remains constant at about $2.4 billion....
Companies mentioned in this report are: Costco Wholesale Corp.
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