Tesco downgraded to 'junk' despite turnaround plan
Moody's downgrades Tesco debt despite shares soaring on plans to close stores, shut head office, and cancel new store openings
Tesco has been downgraded to "junk" status by credit rating ageny Moody's, despite the company unveiling a radical turnaround plan.
Sven Reinke, Moody's vice-president and senior analyst, said Tesco's attempts to protect its balance sheet will "take time to implement" and warned that "structural changes in the UK grocery retail market will continue to challenge the company's operating performance".
Shares in Tesco fell by 4.85p, or 2.3pc, to 204.4p following the downgrade, reversing some of the gains the company enjoyed on Thursday
full article http://www.telegraph.co.uk/finance/...wngraded-to-junk-despite-turnaround-plan.html
Moody's downgrades Tesco debt despite shares soaring on plans to close stores, shut head office, and cancel new store openings
Tesco has been downgraded to "junk" status by credit rating ageny Moody's, despite the company unveiling a radical turnaround plan.
Sven Reinke, Moody's vice-president and senior analyst, said Tesco's attempts to protect its balance sheet will "take time to implement" and warned that "structural changes in the UK grocery retail market will continue to challenge the company's operating performance".
Shares in Tesco fell by 4.85p, or 2.3pc, to 204.4p following the downgrade, reversing some of the gains the company enjoyed on Thursday
full article http://www.telegraph.co.uk/finance/...wngraded-to-junk-despite-turnaround-plan.html