LONDON (Standard&Poor's) July 29, 2008--Standard&Poor's Ratings Services said today it lowered its long-term corporate credit and senior unsecured debt ratings on U.K.-based retailer Tesco PLC to 'A-' from 'A'. At the same time, the short-term corporate credit rating on the group was lowered to 'A-2' from 'A-1'. The outlook is stable. The rating action follows Tesco's announcement that the company is acquiring Royal Bank of Scotland's 50% shareholding in Tesco Personal Finance (TPF) for a cash consideration of £950 million and reflects an increase in the company's indebtedness, which represents a departure from the metrics compatible with an 'A' rating. In addition, we see the TPF acquisition as an indication of a more aggressive financial policy
