DBRS Assigns Rating of BBB (low) to Sobeys Inc. New Debt Issuance, Stable Trend

DBRS has today assigned a rating of BBB (low) with a Stable trend to Sobeys Inc.’s (Sobeys or the Company) $1.0 billion private placement debt issuance announced on July 30, 2013, consisting of the following senior unsecured notes (the Notes):

-- Series 2013-1, $500 million 3.52% senior unsecured notes, maturing on August 8, 2018
-- Series 2013-2, $500 million 4.70% senior unsecured notes, maturing on August 8, 2023

The Notes will be unsecured obligations ranking pari passu with Sobeys’ other senior unsecured indebtedness. Proceeds are expected to be first held in escrow and will ultimately be used to partially fund Sobeys’ previously announced acquisition of Canada Safeway Limited.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Merchandising Industry, which can be found on our website under Methodologies.