Largest retailer in the mature and concentrated Canadian supermarkets industry Shoppers Drug Mart Corp. subsidiary's leading position in the Canadian drugstore market Integration of Shoppers amid continuing systems investments at Loblaw Cos. Ltd. Weak growth and persistently competitive conditions for food retailing in Canada, with solid growth prospects for drugstores Debt leverage after closing Shoppers acquisition that is consistent with a "significant" financial risk profile Good free cash flow available to reduce acquisition debt "Adequate" liquidity and good financial flexibility, enhanced by subsidiaries PC Bank and Choice Real Estate Investment Trust (REIT) The stable outlook on Loblaw reflects Standard&Poor's Ratings Services' expectation that stronger profitability from synergies and debt reduction from free cash flow should enable the company
