Canada's largest food retailer Intensely competitive industry Significant multiyear restructuring program Solid financial flexibility supported by real estate investment trust (REIT) monetization Strong liquidity The stable outlook on Loblaw Cos. Ltd. reflects Standard&Poor's Ratings Services' expectation that steady operating performance would enable the company to maintain its investment-grade financial risk profile despite ongoing pressures, such as intensifying competition and continuing large store-level and supply-chain investments. Moreover, we view the creation of its publicly traded REIT as neutral to credit quality on a consolidated basis, with the REIT's moderate capitalization offsetting higher lease-adjusted debt at the Loblaw level. We believe that ratings stability is supported by the industry-leading breadth of Loblaw's retail platform and credit measures consistent with the
