Tesco downgraded by two rating agencies

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 FCA concludes its investigation without material negative financial implications, Tesco faces huge operational challenges which continue to put its investment-grade rating at risk." The downgrades concluded another...