Standard & Poor's Ratings Services revised its outlook on Tesco from stable to negative on Tuesday (31 Jul). The company said that its 'A-/A-2' long- and short-term corporate credit ratings – a grade that denotes an 'excellent' business risk profile, remain unchanged.
Commenting on Tesco's downgrade, Standard and Poor's said, "We believe that in light of currently difficult industry conditions, a trend of weakening profitability and low top-line growth will continue for U.K.-based retailer Tesco PLC."
The credit rating company recently placed the Co-Operative, the British supermarket chain, on negative watch following its agreement to buy 632 bank branches from Lloyds Banking Group. Moody's has also put the Co-op on review for downgrade.
The McGraw-Hill Companies - the parent company of Standard & Poor's - on 26 Jul reported second quarter revenues of $1.547 million, a decline of 1 per cent compared to the same period last year. (1 Aug)
© 2012 ESM European Supermarket Magazine
