Canada's largest food retailer, with leading shares in most regions Consistent long-term operating performance Strong cash flow generation World-class controlled-label program Weak credit protection measures for the ratings Discounting and supply chain issues that have affected profitability Very competitive operating environment The ratings on Toronto-based grocery and general merchandise retailer Loblaw Companies Ltd. reflect the company's leading Canadian market position, its historically consistent operating performance, a high-quality store portfolio, and a powerful controlled label program. These factors are offset by the company's weak credit ratios for the ratings and declining profitability due to heavy price discounting in central Canada, exacerbated by recent supply chain restructuring challenges. Loblaw recently installed a new senior management team and has developed a three-year renewal
