...- Marks & Spencer PLC (M&S) posted weaker-than-anticipated profitability and like-for-like (LFL) sales growth in its clothing and home segment in the first half of the financial year ending March 31, 2020 (H1 FY2020). - Although M&S' credit metrics may benefit from lower transformation costs, capital expenditure (capex), and dividends in the short term, we think the challenging industry outlook and Brexit-related uncertainty will constrain the group's full-price sales and profitability over the next 24 months. - We think the combination of weak performance to date and deteriorating trading conditions has softened M&S' competitive position over the past 12 months. - We are affirming the '###-' long-term issuer credit rating on M&S. We are also affirming the '###-' issue rating on M&S' senior unsecured debt. - The negative outlook reflects M&S' very limited headroom under the rating, while the challenging macro and industry environment could prevent the company from raising its S&P Global...
