Standard&Poor's assigned a rating to Loblaw Companies Ltd.'s C$200 million 6.85% senior unsecured medium-term notes on Feb. 27, 2002. The ratings are based on Loblaw's position as one of Canada's largest national supermarket chains. The ratings also take into account Loblaw's strong cash flow generation capability, continued strength in operating margins, and innovative and world-class private-label brand program. These strengths are offset by the company's high leverage, resulting from an ongoing aggressive store expansion policy. Both fourth-quarter and full-year sales increased 7% in 2001, to C$21.5 billion at year-end, and lease-adjusted fourth-quarter operating income increased 12.7% to C$519.6 million. Comparable-store sales grew 4.0% for both the fourth quarter and the year, aided partially by slight food price inflation,
