Canada's largest food retailer Solid financial flexibility, with strong liquidity and substantial real estate holdings Well-established private-label programs Increasingly competitive food retailing industry 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 that is somewhat weak for the ratings. We rate Loblaw and its 62.8% owner, George Weston Ltd. (BBB/Stable/--), the same, but the ratings are linked, not equalized, whereby each rating is jointly influenced by
