Leading national market share Consistently strong operating results High-quality store portfolio World-class controlled-label program High debt levels for ratings category Somewhat limited growth potential within Canada Some risk from greater emphasis on general merchandise The ratings on Loblaw Companies Ltd. (Loblaw) reflect its leading Canadian market position, consistent strength in financial results, a high-quality store portfolio that has benefited from a very aggressive capital program, and a powerful controlled label program. These factors are offset by leverage that is high for the current ratings category, somewhat limited growth potential in Canada, and a long-term threat to profitability posed by the continued expansion of Wal-Mart Stores Inc. into Canada. Loblaw's above-average business risk profile reflects its leading regional market shares, as
