Fitch upgrades Tesco Personal Finance

Fitch Ratings said it upgraded Tesco Personal Finance Group plc's (TPFG) long-term issuer default rating to BBB from BBB- and viability rating to bbb from bbb-.

“The upgrade of the VR reflects TPFG's strengthened capitalization, which we expect to be sustainable, supported by better prospects for stable earnings, based on the execution of its new strategy to diversify its fairly concentrated business model as well as reduced risks to asset quality,” Fitch said in a press release.

“We rate TPFG's senior unsecured debt BBB-, one notch below the IDR, to reflect below-average recovery prospects. This is because as of December 2021 the group is not subject to MREL and because we expect the group's stock of holding company senior and group junior debt to remain below 10% of risk-weighted assets,” Fitch said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.