Tesco CEO Lewis Shuns More Quick Fixes to Retailer's Debt Woes
- Grocer seeking to regain investment grade without rights offer
- Capital spending cuts may risk further market-share erosion
This article is for subscribers only.
Tesco Plc’s plan to cut debt without selling any more major assets is raising questions over the U.K. supermarket leader’s ability to recapture investment-grade status if it doesn’t sell shares first.
“They can get there in about four years, but they’d be running a risk that markets could turn down," Rob Orman, a credit analyst at Henderson Global Investors, said by phone. “If they did a rights issue, they could get there in a year or so."