The ratings on Tesco PLC are primarily underpinned by the company's leading market position and superior operating performance in the stable but competitive U.K. food retail market. The ratings also reflect the group's growing international diversification and moderate financial profile, owing to ongoing substantial capital investments. With sales of about £26.3 billion ($43.0 billion) and lease-adjusted EBITDA of about £2.3 billion in financial year ended Feb. 22, 2003, Tesco is the leading U.K. food retailer, with an 18.5% market share. The company derived about 82% of its sales and 86% of its EBITA from the U.K. market in financial 2003. Tesco's consistent approach in its domestic market has been to pass on purchasing and operating efficiencies to customers through a
