The billionaire brothers buying Asda for £7 billon have suffered a blow after their petrol stations group had its credit rating downgraded.
Moody’s, the ratings agency, lowered EG Group’s rating from B2 to B3, placing it deeper into the ‘junk’ category.
EG is owned by Zuber and Mohsin Issa and private equity firm TDR Capital.
Billionaire Zuber Issa, left, with his brother Mohsin
Its lower rating could mean it faces higher costs to borrow money.
Firms rated B3 have previously been described by Moody’s as having ‘fragile business models and a high degree of financial risk, including excessive debt’.
The agency said its decision to downgrade EG was based on ‘the company’s limited progress in terms of financial reporting and governance’. EG Group did not respond to a request for comment last night.
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