...The affirmation of Tesco's IDR and its Stable Outlook reflects Fitch's expectation of a consolidation of the rating headroom regained over the past two years, in terms of both Tesco's business and its financial profile. Fitch forecasts further recovery in Tesco's operating performance but this is likely to be hampered by accumulating challenges in the group's core UK market, including the still uncertain impact of Brexit on consumer behaviour in the medium term. Significant debt repayments and Tesco's property management strengthened the group's financial profile in the financial year ended 25 February 2017 (FY17). Fitch forecasts this to be sustainable, assuming the maintenance of a strict financial policy, notably regarding dividend distributions. Please note that all the metrics mentioned below refer to Tesco's retail operations only....
