Weakening gross margins and challenging trading conditions were cited as reasons for the review by Moodys Corporate Finance lead analyst Yasmin Serghini.
At present, DSGi has a Ba1 rating, but the agency said there was a risk that full-year profit “would trend below Moodys’ previously indicated guidance of£130 million”.
Serghini warned: “This would result in weaker credit metrics, with a leverage ratio moving above five times, a level that Moodys would not view as commensurate with a Ba1 rating category.”
The review will focus on DSGi’s trading over Christmas and “its ability to successfully control costs across the group to mitigate the negative effects of a reduction in customer spending".
Last week DSGi posted like-for-like sales declines of 7 and 11 per cent at its core UK electricals and computing businesses respectively in the 24 weeks to October 18.