Strong position in food retailing through 62.8%-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 62.8%-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 factors are partially offset by weaknesses in Loblaw's operating infrastructure and challenging market conditions leading to profitability that is somewhat weak for the ratings. Moreover, we
