Costco Wholesale Corp. Feb 10
Standard & Poors, February 2010
Abstract
Solid position as largest wholesale club operator; Strong credit measures and balance sheet; Meaningful cash flow generation; and Relatively conservative financial policy. Sales of nonconsumables will be pressured by weak economic conditions; and Competition may hurt the company's already-thin operating margins. The rating reflects Issaquah, Wash.-based leading discount club retailer Costco Wholesale Corp.'s strong business profile and only modest financial risk. Although Costco experienced declining sales during its fiscal year ended August 2009, its profitability and credit metrics remained very strong. We believe the company's focus on necessities and lower prices helped it withstand the recession relatively well. Falling gasoline prices and the strong U.S. currency hurt Costco's revenues during its past fiscal year. As a result, same-store sales decreased...
Companies mentioned in this report are: Costco Wholesale Corp.
Action: Review
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: Full Analysis
Costco Wholesale Corp.
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