...The Negative Outlook reflects prolonged operating weakness in the clothing & home (C&H) division leading to heightened risks of an extension of the group's five-year turnaround plan. This, together with possible higher-than-expected restructuring costs and declining profitability could hinder the group's credit profile for maintaining an investment-grade rating. This is exacerbated by a challenging UK retailing environment, characterised by high online sales penetration and Brexit uncertainty. The affirmation of the IDR at `BBB-' is supported by M&S's strong brand name, well- established position, especially in clothing, and improved omni-channel capabilities, especially in food, following the creation of a JV with Ocado Group plc, and disciplined financial structure....
