Bulletin: Ratings And Outlook On M&S Currently Not Affected By Weak Half-Year Results And Store Closure Programme

LONDON (S&P Global Ratings) Nov. 11, 2016--S&P Global Ratings said today that its ratings and outlook on U.K.-based clothing and convenience food retailer Marks&Spencer PLC (M&S; BBB-/Stable/A-3) are currently not affected by the group's announcement of weak half-year results for its clothing and home segment and the strategic revision of its store portfolio. The revision will involve the closure of loss-making international stores and the repositioning of about a quarter of M&S' clothing and home trading space. In the current fiscal year to end-March 2017, we anticipate that M&S' earnings will be negatively affected by the decline in its clothing and home segment's earnings, as well as costs related to the restructuring of the store portfolio. Nevertheless, we

...LONDON (S&P Global Ratings) Nov. 11, 2016--S&P Global Ratings said today that its ratings and outlook on U.K.-based clothing and convenience food retailer Marks & Spencer PLC (M&S; ###-/Stable/A-3) are currently not affected by the group's announcement of weak half-year results for its clothing and home segment and the strategic revision of its store portfolio. The revision will involve the closure of loss-making international stores and the repositioning of about a quarter of M&S' clothing and home trading space. In the current fiscal year to end-March 2017, we anticipate that M&S' earnings will be negatively affected by the decline in its clothing and home segment's earnings, as well as costs related to the restructuring of the store portfolio. Nevertheless, we believe that this is tempered by the following factors: + We believe that the closure of loss-making stores will be positive for M&S' profitability and will mitigate the decline in clothing and home sales. + For the financial year...

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