Moody’s Investors Service put on review for a possible downgrade about 3.5 Billion pounds ($5.5 billion) of commercial mortgage-backed securities linked to U.K. retailer Tesco Plc.
The action follows the rating firm’s decision to put the Cheshunt, England-based supermarket operator’s A3 rating under review for a downgrade on Jan. 20, analysts including Manuel Rollmann in London wrote in a statement today.
The review covers six transactions including four issues from Tesco special purpose companies that are backed by rents from the retailer’s stores, Moody’s said.
Asset-backed securities package loans into bonds that can be sold on to investors. The securities typically allow issuers to raise capital more cheaply than from unsecured debt.