...- The operating performance of U.K. retailer Marks & Spencer PLC (M&S) surpassed our expectations over the half-year to Oct. 2, 2021, boosted by a strong recovery in the topline in the clothing and home (C&H) segment and continued high demand in the food segment. - Together with a prudent financial policy and cash-preservation initiatives, we now believe that the group will deliver earnings in line with pre-pandemic levels in the fiscal year ending March 31, 2022 (FY2022), and reduce S&P Global Ratings-adjusted leverage to 3.0x-3.5x. - We have therefore revised our outlook on M&S to stable from negative and affirmed our '##+' long-term issuer credit rating on the group. We have also affirmed our '##+' issue and '3' recovery ratings on the group's unsecured medium-term note program. The '3' recovery rating reflects our expectation of meaningful recovery expectations in the event of a default (50%-70%; rounded estimate: 65%). - The stable outlook reflects our expectation that, despite the...
