Moody's could cut Tesco

Moody's Investors Service said it placed the A3 long-term senior unsecured ratings of Tesco plc under review for possible downgrade. The Prime-2 commercial paper and short-term ratings were affirmed.

Moody's said the action reflects the company's post-Christmas trading statement for the six weeks to Jan. 7, in which it reported, firstly, weak comparable U.K. sales growth compared with its peers in food retailing; and secondly, the downward revision in its profit expectations for the current financial year with minimal trading profit growth expected for the following year as well.

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