World's third-largest grocery retailer, with an unrivaled leading market position in the U.K. grocery retail market Superior operating performance and track record in the U.K. due to its scale and a strategy based on business growth through sales rather than margins Well-diversified store portfolio with large percentage of freehold properties Successful diversification into nonfood product categories Intermediate financial risk profile owing to ongoing substantial investment in the U.K. and abroad Persistent negative discretionary cash flow generation Focus on shareholder value creation The ratings on U.K.-based Tesco PLC are supported by its 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-1), and its unrivaled leading market position in the profitable but highly
