The ratings on Toronto-based Loblaw Companies Ltd. reflect the company's position as the largest grocer in Canada with leading market share positions in most regions and a well-established private label program. These strengths are partially offset by what Standard&Poor's Ratings Services views as weaknesses in the company's operating infrastructure and challenging market conditions leading to weak profitability and credit protection measures for the ratings. While the ratings on Loblaw and George Weston Ltd. (BBB/Negative/--), which has a 62% equity interest in Loblaw, are currently the same, the rating relationship between the two remains one of linkage, not equalization, with each rating jointly influenced by the respective credit profiles. With Loblaw comprising a material portion of George Weston's consolidated
