On July 27, 2006, Standard&Poor's Ratings Services placed its ratings, including its 'A' long-term corporate credit rating, on Toronto-based Loblaw Companies Ltd. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of our review. At the same time, Standard&Poor's placed its ratings, including its 'A-' long term corporate credit rating, on parent company George Weston Ltd. on CreditWatch with negative implications. The CreditWatch placements follow Loblaw's weaker-than-expected earnings in the second quarter (ended June 17, 2006) and the expectation that full-year 2006 earnings will remain below expectations and not exceed 2005 levels. The weakness in operations is due to ongoing challenges with Loblaw's supply chain, which are taking
