On May 15, 2008, Standard&Poor's Ratings Services lowered to 'A' from 'A+' its long-term corporate credit and senior unsecured debt ratings on U.K.-based retailer Tesco PLC. At the same time, the 'A-1' short-term corporate credit rating on the group was affirmed. In addition, the outlook was revised to negative from stable. The downgrade reflects the deterioration of Tesco's financial profile below the minimum levels needed to sustain 'A+' ratings as well as the May 14, 2008, announcement that it will acquire a store portfolio in South Korea for £958 million. During fiscal 2008, ending Feb. 23, 2008, significant capital expenditures of £3.4 billion and returns to shareholders of about £1.6 billion were not fully financed by operating cash
