Moody's puts Tesco on downgrade watch

Credit rating agency Moody's has placed Tesco's long-term debt rating under review for a possible downgrade following its recent profit warning.

Moody's said it had placed Tesco's A3 long-term senior unsecured rating under review, giving it a 33% chance of a cut. The move comes after Tesco issued a shock profit warning which sent shares tumbling. The supermarket giant spooked the market after warning in its Christmas trading update that profits for the full year would be at the lower end of expectations. Moody's said on Friday the review followed Tesco's weak performance in its home market over the crucial Christmas and new year trading period. "The company's recent investment in price promotions has not had the anticipa...