21st Apr 2016 15:17
LONDON (Alliance News) - Fitch Ratings on Thursday revised UK-based retailer Tesco PLC's up to Stable from Negative and affirmed its long-term issuer default rating and senior unsecured rating at BB+.
In a statement, Fitch said it also affirmed the short-term issuer default rating and short-term debt ratings at B.
Neither BB+ for long-term debt nor B for short-term debt are investment grade.
"The outlook revision to Stable reflects Fitch's expectation of a progressive recovery in Tesco's core UK market, after a stabilisation in the retailer's operating performance for financial year ended February 2016," the ratings agency said.
"It also reflects the strengthening of the group's balance sheet and financial flexibility, mainly achieved by the divesture of Tesco's Korean operations (Homeplus) and other capital preservation measures, including working capital and capex rationalisation, and no dividends being paid," Fitch said.
Shares in Tesco were up 1.6% at 184.95 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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