date:May 19, 2014
Tesco, Asda, Morrison and the Co-operative Group this year will shave about 1 billion pounds off grocery prices. Morrison and Tesco are also trying to guarantee payments to shareholders by opening fewer large stores to boost cash flow.
If you increase shareholder dividends significantly and your operating profitability deteriorates, your credit profile could be under negative pressure, said Reinke. If an issuer doesnt have sufficient free cash flow to continue to pay high dividends and maintai