Tesco downgraded by two rating agencies

clock

The bad news continued for embattled retailer Tesco yesterday after its credit rating was downgraded by two key agencies.

Both Fitch and Moody's downgraded Tesco's rating - with the latter saying it could be dropped further to junk status depending on the outcome of the ongoing investigation into its accounting practices. Moody's cut the rating on Tesco from Baa2 to Baa3, while Fitch has dropped it from BBB to BBB-. Moody's vice president and senior analyst Sven Reinke said: "Even if the Financial Conduct Authority concludes its investigation without material negative financial implications, Tesco faces huge operational challenges which continue to put its investment-grade rating at risk." The down...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Equities

Net gains: What a tennis great can tell us about equity investing

Net gains: What a tennis great can tell us about equity investing

'When you lose every second point you learn not to dwell on every shot'

Sheldon MacDonald
clock 16 September 2024 • 4 min read
Partner Insight: Value and growth investing in the age of AI

Partner Insight: Value and growth investing in the age of AI

Vanguard combines the expertise of active equity fund managers with distinct investment strategies. This can provide a balanced approach to AI opportunities.

Madison McCall, Active Product Specialist, Vanguard, Europe
clock 10 September 2024 • 7 min read
Partner Insight: Have banking stocks been flying under the radar?

Partner Insight: Have banking stocks been flying under the radar?

Orbis Investments
clock 04 July 2024 • 3 min read