On Jan. 22, 2003, Standard&Poor's Ratings Services placed its ratings on U.K.-based food retailer Tesco PLC on CreditWatch with negative implications, including its long-term 'A+' and short-term 'A-1' corporate credit ratings. The rating action follows the announcement made by Tesco on Jan. 22, 2003, that, subject to regulatory approval, the company is likely to make an offer for the U.K. number-four food retailer Safeway PLC (BBB+/Watch Dev/A-2), comprising an unspecified mixture of cash and shares. In light of Tesco's leading position in the U.K. food retail market, such a bid is likely to attract particular scrutiny from competition authorities. The negative CreditWatch placement on Tesco reflects that additional leverage from the possible takeover of Safeway would apply further
