TORONTO (Standard&Poor's) Feb. 7, 2008--Standard&Poor's Ratings Services today said it lowered its long-term corporate credit and senior unsecured debt ratings on Toronto-based grocery retailer Loblaw Companies Ltd. by one notch, to 'BBB' from 'BBB+'. In addition, we lowered the Canadian scale commercial paper rating to 'A-2' from 'A-1(Low)'. At the same time, Standard&Poor's removed the ratings from CreditWatch with negative implications, where they were placed Nov. 15, 2007, following the announcement of very weak third-quarter performance (ended Oct. 6, 2007). The outlook is negative. "The downgrade reflects the ongoing significant challenges Loblaw faces, including lower profitability, the need to continue restructuring its supply chain, and an increasingly competitive operating environment," said Standard&Poor's
