One of the top-three grocery retailers in the world by revenue, with a leading market position in the U.K. Despite good geographic diversification, the U.K. still accounts for around two-thirds of Tesco's retail sales and profits. Difficult trading conditions evidenced by declining market share and profitability, accompanied by topline pressures. Significant competitive pressures in the U.K. from traditional, online and discount retailers could suppress any tangible benefits from management's turnaround plan. Sizable debt after lease and pension adjustments. Dividend cut signaling financial policy support for the credit rating. Despite profit decline, free cash flow generation is supported by management's commitment to further reduce capital expenditure (capex). Strong liquidity underpinned by diverse liquidity resources and a long-term debt maturity profile. The
