The ratings on Toronto-based George Weston Ltd. reflect the company's strong market position in food distribution through its 62% equity interest in Loblaw Companies Ltd. (Loblaw; A/Stable/--); its solid market presence in food processing through its wholly owned Weston Foods baking and dairy operations; and the financial flexibility afforded by its liquid Loblaw holdings. These factors are partially offset by George Weston's credit protection measures, which are weak for the ratings; recent earnings softness; and by the highly competitive operating environment in both food distribution and processing. The ratings on George Weston and Loblaw are linked and jointly influenced by their respective credit profiles. The ratings on George Weston benefit substantially from the solid stand-alone credit profile and high relative
