Strong market positions as the number-one department store operator and one of the largest apparel retailers in the U.K., in addition to a solid, up-market niche position in the U.K. food retail market; Good brand recognition; Potential for further improvements to operating profitability; Management's commitment to maintaining a financial policy consistent with the ratings. Persistent revenue pressure due to fierce competition and softer consumer spending during financial 2006, which could limit improvements to operating earnings; Execution risks associated with new management teams; Fashion risk and seasonality, which exposes the group to volatility in sales and operating earnings; and Currently weak debt-protection measures. The ratings on U.K.-based Marks&Spencer PLC (M&S) reflect the group's leading market position with good brand
