Largest retailer in the mature and concentrated Canadian supermarket industry Shoppers Drug Mart Corp. subsidiary's leading position in the Canadian drugstore market Integration of Shoppers Drug Mart 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 An adjusted debt-to-EBITDA ratio in the 2x-3x range over the next few years Good free cash flow available to reduce acquisition debt "Adequate" liquidity and good financial flexibility, enhanced by subsidiaries PC Bank and Choice Properties Real Estate Investment Trust (REIT) The combination of a "satisfactory" business risk profile and an "intermediate" financial risk profile results in an initial analytical outcome (anchor) of either 'bbb' or 'bbb-'. Our
