Tesco needs to raise more than £5bn to rebuild its balance sheet, according to analysis by credit ratings agency Moody’s.
The agency said a fundamental restructuring of the balance sheet needs to take place, despite the supermarket chain already cutting jobs, closing its defined pension scheme and shutting its head office in Cheshunt, Hertfordshire.
Tesco made a £6.4bn pre-tax loss in the last financial year and has debts of £22bn including its pension deficit and rental commitments.
The credit agency now ranks Tesco’s debt at ‘junk’. It needs to raise more than £5bn to get its investment grade credit rating back, reported the newspaper.