...May 18, 2023 - We believe that Toronto, Ont.-based George Weston Ltd.'s (GWL) debt-to-EBITDA ratio will remain comfortably within the 2.5x-3.0x range for the next 24 months, stemming from the strong operating performance of company's key operating subsidiary Loblaw Cos. Ltd. - Hence, we revised upward our assessment of GWL's financial risk profile to intermediate from significant reflecting the improved stability and performance. - GWL's leverage is at a five-year low of 2.50x as of year-end Dec 2022, which is comfortably below our upgrade threshold of 3.25x. - Although we forecast credit metrics will be strong for the ratings in the near term, we believe management would likely manage leverage to a wider band, reflecting our view that the company will use excess balance-sheet capacity for shareholder distributions and investment at subsidiary levels rather than reduce debt. Therefore we have applied a one- notch negative financial policy modifier. - As a result, of all of the above, S&P...
