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. They are further supported by a moderate financial policy and profile consistent with the ratings. The ratings are constrained by the highly competitive, volatile, and seasonal nature of the U.K. apparel retail market. In addition, the industry faces the risk of changes in fashion, which exposes the group to potentially volatile sales operating earnings. With sales of £8.2 billion and earnings before interest,
