As fierce competition and cost inflation prevail in the U.K. retail market, Marks&Spencer PLC (M&S) continues to focus on strengthening its balance sheet and maintaining its financial flexibility by tempering capital expenditure and cash returns to shareholders. We anticipate that revenues will remain largely flat over the next two years as performance in the clothing and home segment remains volatile, while modest growth in food sales relies predominantly on increasing the number of the group's stores. Accordingly, we are affirming our 'BBB-' long-term corporate credit rating and our 'A-3' short-term rating on M&S. The stable outlook reflects our expectation that M&S will be able to maintain its leading market position in the U.K. clothing market and moderately expand
