We are revising the outlook on Loblaw Companies Ltd. to stable from negative on improved profitability and leverage amid weak economic conditions and intense competition. We are also affirming the ratings, including the 'BBB' long-term corporate credit rating, on the company. Loblaw's operating performance is still under pressure from price competition and ongoing expenditures to modernize its IT platform. Improved credit measures remain somewhat weak for the ratings and are counterbalanced by the industry-leading breadth of Loblaw's retail platform. TORONTO (Standard&Poor's) Oct. 21, 2009--Standard&Poor's Ratings Services today said it revised its outlook on Toronto-based Loblaw Companies Ltd. to stable from negative. At the same time, we affirmed the ratings, including the 'BBB' long-term corporate rating on
