S&P joins Moody’s in downgrade of Tesco stock

Tesco was dealt a new blow yesterday as Standard & Poor’s joined Moody’s Investors Service in cutting debt at the UK’s biggest grocer to below investment grade.

The senior long-term credit rating was lowered to BB+ from BBB-, the last investment-grade level, S&P said today in a statement.

Following the downgrade, Tesco’s outlook is stable, S&P said. Moody’s last week became the first rating provider to cut Tesco debt to junk, saying measures announced by chief executive Dave Lewis to revive the struggling retailer will take time to implement.