Fitch, the only international rating agency which covers WH Smith, has threatened another major credit downgrade just 24 hours after the UK retailer explained plans to revive its business.

The agency said: "The group's financial profile has deteriorated continuously over the past three years and the medium- to long-term strategy to improve core UK retail operations, which accounted for 85% of financial year '03's £106m (€160m) operating profit before exceptional and goodwill amortisation, carries significant execution risk."