Moody's Upgrades Tesco To 'Investment Grade' Rating
Moody’s Investors Service has announced that it has upgraded retailer Tesco to a Baa3 ‘investment grade’ rating, up from a Ba1 ‘speculative grade’ rating, following a positive profit forecast by the retailer.
The ratings agency reported that, over the past few years, Tesco has ‘successfully enhanced price competitiveness, product availability and quality perception’, while also making ‘material cost savings’ to support margin recovery.
However, it added that competition in the UK marketplace is ‘significant’, with the expansion of the discounters impacting margins in the retail sector.
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