{"id":2105,"date":"2008-04-30T16:23:17","date_gmt":"2008-04-30T20:23:17","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=2105"},"modified":"2008-04-30T16:23:17","modified_gmt":"2008-04-30T20:23:17","slug":"dbrs-downgrades-loblaws-but-weston-unaffected","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=2105","title":{"rendered":"DBRS Downgrades Loblaws but Weston Unaffected"},"content":{"rendered":"

DBRS<\/a>:<\/p>\n

has today downgraded the long-term ratings of Loblaw Companies Limited (Loblaw or the Company) to BBB from BBB (high), maintaining the Negative trend. At the same time, DBRS has downgraded the Company\u2019s short-term rating to R-2 (middle) from R-2 (high) and has changed the trend to Negative from Stable.
…<\/b>
The status of the Company\u2019s turnaround plan and most recent operating performance leads DBRS to the conclusion that stabilization of performance at a level that is commensurate with a BBB (high) rating over the course of this year is improbable.
…<\/b>
The deteriorating operating performance, combined with the longer time period and mounting risks associated with changes to the turnaround plan and management team, result in a credit risk profile that is no longer consistent with a BBB (high) rating from DBRS.<\/p>\n

In terms of outlook, DBRS has placed the trend at Negative as we believe a meaningful recovery will remain challenging, since Loblaw is expected to continue investing in pricing within an increasingly competitive environment.
…<\/b>
DBRS\u2019s ratings for George Weston Limited remain unchanged following the rating actions on Loblaw.<\/p><\/blockquote>\n

They weren’t impressed by the profit increase<\/a>!<\/p>\n

Assiduous Readers will doubtless remember their comment at the time of the Weston downgrade<\/a>:<\/p>\n

With the downgrade of Loblaw\u2019s ratings to BBB (high) and R-2 (high), the ratings for Weston at BBB and R-2 (high) reflect more its operating businesses and less the support from the Loblaw rating. As such, if there is any further deterioration in Loblaw\u2019s long-term rating, it will not necessarily affect the long-term rating of Weston.<\/p><\/blockquote>\n

Loblaw is currently rated BBB by S&P.<\/p>\n

Weston has the following issues outstanding: WN.PR.A WN.PR.B WN.PR.C WN.PR.D WN.PR.E<\/p>\n","protected":false},"excerpt":{"rendered":"

DBRS: has today downgraded the long-term ratings of Loblaw Companies Limited (Loblaw or the Company) to BBB from BBB (high), maintaining the Negative trend. At the same time, DBRS has downgraded the Company\u2019s short-term rating …<\/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-2105","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2105","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=2105"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/2105\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}