LONDON (Standard&Poor's) Jan. 23, 2007--Standard&Poor's Ratings Services said today that its ratings and outlook on U.K.-based retailer Marks&Spencer PLC (M&S; BBB/Stable/A-2) are unchanged following the group's announcement to fund a large part of its U.K. defined benefit pension scheme deficit via a property-backed partnership. The pension deficit--which was £1.03 billion at Sept. 30, 2006, on an IAS 19 valuation, or £704 million at March 31, 2006, on an actuarial valuation--will be reduced by £500 million. This is a result of M&S contributing properties into a partnership with the pension scheme, thereby creating a plan asset. We view today's announcement as broadly neutral to the group's ratings. The deficit, which we consider akin to debt,
