{"id":1468,"date":"2007-11-16T20:59:50","date_gmt":"2007-11-17T00:59:50","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1468"},"modified":"2007-11-16T20:59:50","modified_gmt":"2007-11-17T00:59:50","slug":"weston-on-review-negative-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1468","title":{"rendered":"Weston on Review Negative by DBRS"},"content":{"rendered":"

DBRS<\/a> has announced that Weston is under review with negative implications due to the review of Loblaw:<\/p>\n

\n

DBRS has today placed the ratings of Loblaw Companies Limited (Loblaw, or the Company) Under Review with Negative Implications based on the Company\u2019s deepening decline in earnings that shows no sign of abating. DBRS is increasingly concerned about Loblaw\u2019s ability to execute on its turnaround plan and achieve the improvements required to maintain its current ratings.
\n…<\/strong>
\n(1) Operational problems such as supply chain management and integration of the management team.
\n(2) An intensifying competitive environment and Loblaw\u2019s ability to generate meaningful same-store sales growth and improve operating income using a price-reduction strategy in this environment.
\n(3) Implementation of meaningful cost saving initiatives.<\/p>\n<\/blockquote>\n

This follows the downgrade to Pfd-3(high) on May 22<\/a>. Weston has the following preferred issues trading on the TSX: WN.PR.A WN.PR.B WN.PR.C WN.PR.D & WN.PR.E. All except WN.PR.B are fixed-rate perpetual; WN.PR.B is retractible.<\/p>\n

This follows a similar announcement by S&P<\/a>:<\/p>\n

\n

Standard & Poor’s Ratings Services today said it placed its ratings, including the ‘BBB+’ long-term corporate credit rating, on Toronto-based retailer Loblaw Companies Ltd. on CreditWatch with negative implications. At the same time, we placed the ratings on parent company George Weston Ltd., including the ‘BBB’ long-term corporate credit rating, on CreditWatch with negative implications.<\/p>\n

“The CreditWatch placement follows Loblaw’s announcement of its very weak third-quarter performance,” said Standard & Poor’s credit analyst Maude Tremblay.<\/p>\n<\/blockquote>\n

Update, 2008-2-7<\/strong>: DBRS<\/a> has today:<\/p>\n

\n

downgraded the long-term ratings of Loblaw Companies Limited (Loblaw or the Company) to BBB (high) from A (low) and has also downgraded the short-term rating to R-2 (high) from R-1 (low). The trend is Negative for the long-term ratings and Stable for the short-term rating.
\n…<\/b>
\nDBRS\u2019s ratings for George Weston Limited remain Under Review with Negative Implications (where they were placed on November 16, 2007), until the review is completed this month.<\/p>\n<\/blockquote>\n

S&P<\/a> also downgraded Loblaws to BBB (no modifier!) and still with a negative trend, while maintaining Weston on Watch Negative.\u00a0\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

DBRS has announced that Weston is under review with negative implications due to the review of Loblaw: DBRS has today placed the ratings of Loblaw Companies Limited (Loblaw, or the Company) Under Review with Negative …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1468","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1468"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1468\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}