S&P raises Whole Foods' rating outlook to positive

San Francisco Standard & Poor's Ratings Services said Thursday that it revised the outlook on Whole Foods Markets' BB- corporate credit rating to positive from stable.

"The outlook revision to positive reflects our expectation that Whole Foods' credit metrics could improve meaningfully if it uses its excess cash to pay down its term loan over the next nine to 18 months," said Stella Kapur, an S&P credit analyst.

The current rating on Whole Foods reflects steeper competition in the natural foods retail sector and the company's highly leveraged capital structure, which is partly offset by its leading position in the industry.