On May 28, 2004, Standard&Poor's Ratings Services placed its 'A' long-term and 'A-1' short-term corporate credit ratings on U.K.-based retailer Marks&Spencer PLC (M&S) and related entities on CreditWatch with negative implications. This follows a potential offer from retail entrepreneur Philip Green. The potential offer is believed to comprise an unspecified mixture of cash and shares. M&S' current market capitalization is about £8.0 billion ($14.7 billion), based on a share price of £3.52. At April 3, 2004, the company's total lease- and pension-adjusted debt outstanding was approximately £3.8 billion. The CreditWatch placement reflects the possibility that debt leverage will be increased substantially in order to fund the potential takeover offer. As a result, Standard&Poor's believes
