As conditions in the apparel market remain sluggish, 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 earnings will remain largely flat over the next two years as performance in the clothing and home segment remains weak, while growth in food sales relies predominantly on expanding the number of the company'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 its food retail business. Given
