Morrisons’ credit rating downgraded after report of poor sales and profit

Morrisons has had its credit rating reduced from B1 to B2. Photograph: Phil Noble/Reuters

Morrisons’ credit rating has been downgraded after the supermarket reported poor sales and profits in the latest blow for the UK’s fifth-largest supermarket.

Moody’s, the credit rating agency, said the outlook for Morrisons’ ability to repay its £7.5bn of debts had shifted to negative from stable and its existing junk rating knocked down one notch, from B1 to B2, indicating higher risk.