The ratings on Toronto-based Loblaw Companies Ltd. reflect Standard&Poor's Ratings Services' view of the company's satisfactory business risk profile, characterized by its position as the largest grocer in Canada with leading market shares in all regions it serves and a well-established private-label program. We believe these strengths are partially offset by weaknesses in the company's operating infrastructure that have contributed to significant incremental capital and operating expenditures amid challenging market conditions. We rate Loblaw and its 63% 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
