...The upgrade of Tesco PLC's Issuer Default Rating to `BBB-' in October 2018 reflects the evidence of a successful turnaround of Tesco's UK operations so far, leading to improving profitability over the past 24 months, a trend that Fitch Ratings envisages can be sustained through Brexit. It also acknow ledges the group's deleveraging through sizeable gross debt reduction. The improved business and financial profiles are now in line w ith the `BBB' category for the retail sector. The resulting regained financial flexibility should help the group w ithstand potential disruptions stemming from Brexit, supporting the Stable Outlook. The rating also factors in the continuation of the successful turnaround initiatives and a conservative financial policy....
