Canada's largest food retailer with leading shares in most regions Consistent long term operating performance Strong cash flow generation World class control label program Credit protection measures are weak for the ratings Discounting and supply chain issues have affected profitability Very competitive operating environment The ratings on Loblaw Cos. Ltd. (Loblaw) reflect its leading Canadian market position, consistent operating performance and very strong cash flow generation, a high-quality store portfolio, and a powerful controlled-label program. These factors are partially offset by the company's high leverage for the rating given an aggressive capital expenditure program and a very competitive operating environment in Canadian food retailing, exacerbated by the company's recent supply chain problems. Loblaw's strong business risk profile reflects its leading
