The ratings on Tesco PLC are primarily underpinned by its 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 and earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) of about £32.6 billion and £2.9 billion for the 12 months to Aug. 14, 2004, Tesco is one of world's most rapidly growing retailers. The group derives about 80% of its sales and 82% of its EBITA from the U.K. market and has an estimated 19.5% leading market share. Tesco's consistent approach in its domestic market has been to pass on purchasing and
