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Tesco (TSCOLN; Baa3, BBB-, BBB-; S) Moody's Affirms at Baa3 Stable

CONSUMER STAPLES

Moody's clears the guided to equity pay-outs from Tesco bank sale proceeds. We have a screen cheap on the €31s and £34s on carry over peers - both have moved against us.


"Tesco's rating currently remains well positioned in the Baa3 category supported by modest leverage and robust operating performance in the backdrop of intense competition. The operating profit margin of the company will likely see some pressure in FY2025 and some of its credit metrics could soften to accommodate higher shareholder returns and potential bolt-on acquisitions over the next 12-18 months" - Moody's

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