Pressure mounts on M&S and Dixons-Carphone

Retail giant Marks & Spencer has had its credit rating reduced to ‘junk’ status — suggesting it may have difficulty repaying its lenders — and electrical goods group Dixons-Carphone has warned of an adverse impact on its profitability and cash position as the pandemic continues to batter high street traders.

Marks & Spencer has had its credit rating reduced; while Dixon's Carphone admitted online sales wouldn't see it meet annual profit targets

Retail giant Marks & Spencer has had its credit rating reduced to ‘junk’ status — suggesting it may have difficulty repaying its lenders — and electrical goods group Dixons-Carphone has warned of an adverse impact on its profitability and cash position as the pandemic continues to batter high street traders.

Ratings firm Standard & Poor’s said it expects M&S’ sales to be significantly dented by the Covid-19 outbreak, and warned it could lower its rating even further if the UK government’s social lockdown continues into the second half of the year.