The ratings on U.K.-based Tesco PLC reflect Standard&Poor's Ratings Services' view of the company's excellent business risk profile. This is supported by Tesco's position as the world's third-largest grocery retailer after U.S.-based Wal-Mart Stores Inc. (AA/Stable/A-1+) and France-based Carrefour S.A. (A-/Stable/A-2), and its leading market position in the profitable but highly competitive U.K. food retail market. The ratings are also underpinned by increasing international diversification and Tesco's successful leveraging of its brand to sell nonfood products. In addition, we view Tesco's growing portfolio of real estate assets and high degree of property ownership, especially in the highly regulated U.K. food retail market, as supporting rating factors. The ratings also factor in our view of Tesco's significant financial risk
