Moody's has downgraded Tesco's debt rating after warning it will "take time to revive profit growth" at the UK's largest supermarket.
The ratings agency reduced Tesco's long-term senior unsecured rating by one notch to Baa1 from A3, warning its most recent measures to boost profits will take time to come through. The downgrade comes after Tesco this week announced a £1bn revamp of its stores. Yasmina Serghini-Douvin, senior analyst at Moody's, said: ""The downgrade of Tesco's rating to Baa1 is chiefly supported by our view that it will take time for Tesco to reap the benefits of the measures it has announced in order to revive profit growth in its key UK market to levels seen in previous years, especially in the cur...
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