Walmart Outlook to Negative by S&P on Flipkart; Shares Down 4.1%

Walmart’s outlook has been revised from stable by S&P after the retailer agreed to $16b deal to buy Flipkart, while Walmart’s ratings are affirmed.

S&P says it sees leverage increasing about a half turn more than previously projected for the coming fiscal year Outlook revision is given these weaker credit metric projections and heightened execution risk as Walmart spends heavily to expand its online and global reach while continuing its share buyback program, S&P saysS&P says there is a one-in-three chance Walmart’s strategic repositioning to compete with encroaching retail players including through more aggressive global deal-making and a possible financial policy shift may result in a downgrade over the next two yearsNOTE: Walmart’s S&P long-term foreign issuer credit rating has been AA since at least 1999, according to Bloomberg data; outlook had been stable since 2001 NOTE: Earlier, Walmart’s $16 Billion Flipkart Buy Gets Rude Welcome From Market

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