NEW YORK — Moody's Investors Service here said last week the announcement by Costco Wholesale Corp., Issaquah, Wash., concerning its plan to institute a $4 billion share repurchase program, to be executed through April 2015, will have no impact on the company's A2 long-term rating or its positive outlook.
"Costco has significant cash balances and is also generating sufficient free cash flow to handle this level of repurchase activity without increases in leverage," the agency said.
"In our recent change in outlook to positive from stable, we assumed a more aggressive financial policy given these factors, and this announcement is within the band of tolerance."
