The ratings on U.K.-based Marks&Spencer PLC (M&S) reflect the group's leading market position with good brand recognition in the highly competitive, volatile, and seasonal U.K. apparel-retail market and decent upmarket, niche position in the U.K. food-retail market. The ratings also reflect the expectation that operating earnings will improve during financial 2006, as the new management implements its turnaround strategies. The ratings are also supported by management's commitment to restoring and sustaining a financial profile consistent for the current ratings. Since a strategic review in July 2004 by the group's new management team, led by CEO Stuart Rose, M&S is undertaking a fundamental change in its supply chain whilst implementing various new retailing initiatives amidst fierce competition from discount-oriented
