Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk - S&P Global Ratings’ Credit Research

Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk

Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk - S&P Global Ratings’ Credit Research
Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk
Published Jan 17, 2022
5 pages (1920 words) — Published Jan 17, 2022
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

In December 2021, George Weston Ltd. (GWL) completed the sale of Weston Foods for C$1.47 billion. We assess GWL on a consolidated basis and view the debt at Choice Properties Real Estate Investment Trust (REIT) and Loblaw Cos. Ltd. as priority debt relative to GWL's unsecured debt. With the Weston Foods sale, we now view GWL as a holding company with no direct operating cash flow or operating assets to mitigate the structural subordination risk of the unsecured debt at GWL. As a result, on Jan. 17, 2022, S&P Global Ratings lowered its issue-level ratings on GWL's unsecured debt to 'BBB-' from 'BBB'. The 'BBB' issuer credit rating on the company is unchanged. The stable outlook on GWL reflects S&P

  
Brief Excerpt:

...- In December 2021, George Weston Ltd. (GWL) completed the sale of Weston Foods for C$1.47 billion. - We assess GWL on a consolidated basis and view the debt at Choice Properties Real Estate Investment Trust (REIT) and Loblaw Cos. Ltd. as priority debt relative to GWL's unsecured debt. - With the Weston Foods sale, we now view GWL as a holding company with no direct operating cash flow or operating assets to mitigate the structural subordination risk of the unsecured debt at GWL. - As a result, on Jan. 17, 2022, S&P Global Ratings lowered its issue-level ratings on GWL's unsecured debt to '###-' from '###'. The '###' issuer credit rating on the company is unchanged. - The stable outlook on GWL reflects S&P Global Ratings' expectation that GWL's consolidated adjusted debt-to-EBITDA ratio will be below the 3x area through 2022....

  
Report Type:

Research Update

Ticker
WN@CN
Issuer
George Weston Ltd.
GICS
Food Retail (30101030)
Sector
Global Issuers
Country
Canada
Region
Canada
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk" Jan 17, 2022. Alacra Store. May 24, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-George-Weston-Ltd-Unsecured-Debt-Downgraded-To-BBB-From-BBB-On-Structural-Subordination-Risk-2781432>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: George Weston Ltd. Unsecured Debt Downgraded To 'BBB-' From 'BBB' On Structural Subordination Risk Jan 17, 2022. New York, NY: Alacra Store. Retrieved May 24, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-George-Weston-Ltd-Unsecured-Debt-Downgraded-To-BBB-From-BBB-On-Structural-Subordination-Risk-2781432>
  
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