We are affirming all our ratings on Toronto-based Loblaw Cos. Ltd. and George Weston Ltd., including our 'BBB' long-term corporate credit rating on each company, following Loblaw's announcement that it intends to contribute about C$7 billion of real estate assets into a publicly traded real estate investment trust (REIT). We expect that management will make financing and ownership decisions to capitalize the Loblaw retailer and REIT in a manner that keeps consolidated credit measures in line with the 'BBB' rating. We estimate that the proposed changes will have a limited effect on consolidated profitability and cash flow measures, with negative cash flow consequences restricted to the net of Loblaw rents and REIT investment returns to Loblaw. The stable outlook reflects
