Tesco PLC's management have stated that they now anticipate that the group's trading profit for the financial year-ending February 2015 will not exceed £1.4 billion. This estimate is substantially lower than our previous expectations and will result in weaker credit metrics than we previously forecast. Management have indicated that they will share more details about measures to strengthen the balance sheet on Jan. 8, 2015. In light of this, we are placing our 'BBB-/A-3' long- and short-term corporate credit ratings on Tesco on CreditWatch negative. The CreditWatch will remain in place while we consider the effect of any management actions to improve the group's financial risk profile. On Dec. 10, 2014, Standard&Poor's Ratings Services placed its 'BBB-' long-term
