The ratings on U.K.-based Tesco PLC reflect its leading market position and strong operating performance in the stable but highly competitive U.K. food retail market, with good brand recognition and an extensive store network across the U.K. The ratings are also underpinned by some international diversification and Tesco's successful leveraging of its brand to sell nonfood products. These positives are partially offset by Tesco's financial risk profile, which stands at intermediate owing to ongoing substantial capital investments. With sales and earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) of about £42.6 billion and £3.9 billion, respectively, for the year ended Feb. 28, 2007 (fiscal 2007), Tesco is one of the world's most rapidly growing retailers. The group derives about
