Fitch affirms Costco

Fitch Ratings said it affirmed Costco Wholesale Corp.'s long-term issuer default rating and senior unsecured notes at AA-, convertible subordinated notes at A+, short-term issuer default rating at F1+ and commercial paper at F1+.

The outlook is stable.

Ratings reflect the company's disciplined strategy with regard to merchandising and pricing, loyal customer base, steady operating performance and liquidity position, the agency said.

Also considered is the challenging economic and competitive environment, which could pressure sales and operating profit and the possibility of future debt financed share repurchases, the agency noted.

For the 12 months ended Nov. 23, adjusted debt-to-operating EBITDAR ratio was 1.3.

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