...- Tesco's operating performance in fiscal 2024 (ended Feb. 24, 2024) exceeded our expectations with revenue above ú68 billion and our adjusted EBITDA margin of around 6.6% resulting in strong cash flow generation. - We forecast resilient performance will continue in fiscal 2025, supported by an improving macroeconomic environment, which will result in continuously strong credit metrics, despite a shareholder-friendly financial policy. - We therefore revised our outlook on Tesco PLC to positive from stable and affirmed the '###-/A-3' long- and short-term issuer credit ratings, and the '###-' issue rating on the senior unsecured debt. - The positive outlook reflects our expectation that Tesco's resilient operating performance will continue in the next 12-24 months and translate into strong cash flow generation and leverage around 2.5x-2.8x, which will allow the group to continue shareholder-friendly distributions....
