Mounting Tesco troubles threaten its CMBS bonds

Tesco 230x
By Tom Porter
01 May 2014

Moody’s has placed nearly £4bn of CMBS credit-tenant-linked notes issued by Tesco plc on review for downgrade. The rating agency placed the UK supermarket group’s senior unsecured rating on review for downgrade earlier this week as rivals continue to eat into its market share and profits.

Moodys’ downgraded Tesco from A3 to Baa1 in April 2012 days after the company unveiled a £1bn turnaround plan for its core UK business, triggering an identical downgrade of CMBS issued under Delamare Finance and Tesco Property Finance 1, 2, 3, 4 and 5.

This time £493.4m of ...

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