The ratings on U.K.-based Marks&Spencer PLC (M&S) reflect the group's leading market position in the U.K. apparel-retail market and strong upmarket position in the U.K. food-retail market. The ratings also reflect the expectation that management will continue to maintain the trading momentum in sales and profit improvement, and also its reestablished competitive position. The ratings are further supported by a financial policy and profile consistent for the ratings. The ratings are constrained by the highly competitive, volatile, and seasonal nature of the U.K. apparel-retail market. In addition to seasonality, the industry also faces the risks of changes in fashion, which exposes the group to volatility in sales operating earnings. With sales of £8.2 billion and earnings before interest,
