Iceland Foods has debt rating  cut as 'electricity bill to more than double'

Retailer especially exposed to refrigeration costs for its predominantly frozen food products

Iceland recently announced it would allow customers to pay for food in instalments and previously said the chain was losing customers to food banks. Picture: Robbie Reynolds

Moody's has further cut its debt rating for Iceland Foods and warned of refinancing risks as the outlook deteriorates for the British and Irish foods retailer.     

Iceland’s £550m (€652m) of bonds maturing in March 2025 dropped, and have now fallen in the past week, dropping below 80% of their face value — the level typically considered distressed.