TORONTO (Standard&Poor's) June 11, 2008--Standard&Poor's Ratings Services today said it assigned its 'P-3(High)' issue rating to Loblaw Companies Ltd.'s proposed C$225 million cumulative redeemable convertible preferred shares. The company will use the proceeds for general corporate purposes. "The ratings on Loblaw reflect the company's position as the largest grocer in Canada with the leading market share in most regions; well-established, controlled-label programs; and satisfactory operating cash flow generation," said Standard&Poor's credit analyst Maude Tremblay. These strengths are partially offset by weaknesses in the company's supply chain and IT, contracting profitability margins, weak credit protection measures for the ratings, and challenging market conditions. The preferred shares issue will not materially affect the company's credit metrics
