Debt at Sainsbury is heading towards so-called ‘junk status’, said The Times today.

The supermarket groups’ recent profit warning and a falling market share has prompted Moody’s Investor Service, the ratings agency, to cut its rating on the ailing supermarket group by one notch. Moody’s has given it a classification of Baa2, warning that the outlook for the new rating is negative.

Moody’s also reportedly gave the supermarket’s prospects a “negative outlook.”

Shares at Sainsbury fell 3 to 260.75p yesterday, just 3.25p of its 12-month low.