Woolworths, Australia's largest retailer, may seek a credit rating and sell commercial paper to help pay for acquisitions, upgrade its stores and buy back stock, said Chief Financial Officer Bill Wavish. The owner of Woolworths supermarkets, Big W department stores and Dick Smith outlets has been buying assets and expanding services at its stores in an effort to maintain its grocery-store dominance and boost earnings. Since the start of the year, the company has agreed to buy more grocery, electronic and liquor stores. Woolworths rose to a record this week after it announced plans to buy back 3.7 per cent of its stock. The company has the ''most effective'' capital management plan compared to its main rival Coles Myer, he added.
Commercial paper is debt that typically matures in less than a year.
These faculties have recently been extended to 2003 and 2005, the company said. The company isn't planning to increase the term of its debt though it would consider diversifying its funding arrangements.