Canada's largest food retailer Solid financial flexibility, with strong liquidity and substantial real estate holdings Well-established controlled-label programs Increasingly competitive food retailing industry Weak credit protection measures for the ratings Significant multiyear restructuring program The ratings on Toronto-based Loblaw Companies Ltd. reflect the company's position as the largest grocer in Canada with leading market share positions in all regions it serves and a well-established private label program. These strengths are partially offset by what Standard&Poor's Ratings Services views as weaknesses in the company's operating infrastructure and challenging market conditions leading to profitability and credit protection measures that are somewhat weak for the ratings. We rate Loblaw and its 62.8% owner, George Weston Ltd. (BBB/Stable/--), the same, but the
