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 all regions it serves 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 profitability and credit protection measures that are somewhat weak for the ratings. We rate Loblaw and its 62.8% owner, George Weston Ltd. (BBB/Stable/--), the same, but the ratings are linked, not equalized, whereby each rating is jointly influenced by the respective companies' credit profiles. The current linkage between the two companies is direct, because Loblaw accounts for the vast majority of
