The ratings on U.K.-based retailer Tesco PLC (Tesco) reflect Standard&Poor's Ratings Services' view of the company's "excellent" business risk profile as the world's third-largest food retailer, and its "significant" financial risk profile. Tesco's business risk profile is underpinned by its leading market share in the U.K., which is well ahead of that of its nearest competitors. The company also benefits from good geographic diversification, notably with significant exposure to Southeast Asia and Central Europe. Tempering these strengths is intensifying competition in Tesco's home market against a backdrop of weak consumer spending and profitability pressures. Our view of Tesco's financial risk profile takes into account its sizable debt on a Standard&Poor's lease-adjusted basis and a history of
