Home Business News Every little hurts: Tesco downgraded by Moody's

Every little hurts: Tesco downgraded by Moody's

by LLB Editor
17th Jun 14 9:13 am

Moody’s has cut Tesco’s rating, giving it only two grades above “junk status”.

The supermarket giant saw its ratings reduced to Baa2 from Baa1.

The news comes after Tesco revealed a third successive quarter of sales falls across the UK. Earlier this month, Tesco reported a 3.8% drop in like-for-like sales in the UK in the last quarter.

Moody’s also warned Tesco of tough conditions over the next 12 to 18 months.

Sven Reinke, senior analyst at Moody’s, said: “We have downgraded Tesco’s rating owing to the increasingly difficult conditions in the UK retail grocery market, which contributed to a 6 per cent drop in the group’s 2013-14 trading profit and weak first quarter of fiscal 2014-15 sales results.

“We expect these conditions to continue affecting the company’s credit profile negatively over the next 12-18 months.”

Now read:

Tesco to remove anti-homeless spikes after concrete-pouring protest

Leave a Comment


Sign up to our daily news alerts

[ms-form id=1]