The ratings on U.K.-based Marks&Spencer PLC (M&S) reflect the group's leading position in the U.K. apparel retail market and strong, upmarket position in U.K. food retail. The ratings also reflect Standard&Poor's Rating Services' expectation that management will continue to maintain momentum in sales and profit improvement, as well as its re-established competitive position. The ratings are further supported by a sound financial policy and profile. Constraining factors include the highly competitive, volatile, and seasonal nature of U.K. apparel retail. With sales of £8.6 billion and earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) of about £1.5 billion for fiscal 2007 (year ended March 31, 2007), M&S is enjoying a turnaround in its operating performance with
