A solid and leading market position in the U.K. food-retail market. Superior operating performance and track record in the U.K. due to scale and a strategy based on growing the business through sales and not margin. Good store diversity. Success in selling a wide array of nonfood products. Intermediate financial risk profile owing to ongoing substantial investment both in the U.K. and abroad. Persistent negative discretionary cash flow generation, but strong earnings growth mitigates rise in debt. Increasing focus on shareholder value creation. Increasing exposure to volatile emerging markets. The ratings on U.K.-based Tesco PLC reflect its leading market position and superior operating performance in the stable but highly competitive U.K. food-retail market, with good brand recognition and an extensive
