Strong position in food retailing through 63%-owned Loblaw Companies Ltd. Well-recognized Weston Foods brands in Canada Large cash balances at both George Weston Ltd. and Loblaw Heavy competition in both food retailing and processing Significant multiyear restructuring program at Loblaw The ratings on Toronto-based George Weston Ltd. reflect what Standard&Poor's Ratings Services views as the company's strong market position in food processing and food distribution through its 63%-owned subsidiary, Loblaw Companies Ltd. (BBB/Stable/--), as well as the financial flexibility afforded by its substantial cash balances and liquid Loblaw holdings. We believe these strengths are partially offset by weaknesses in Loblaw's operating infrastructure, which have brought about significant capital and operating expenditures for the company amid challenging market conditions.
