DBRS Places Safeway Inc. Under Review with Negative Implications

DBRS has today placed the ratings of Safeway Inc. and Canada Safeway Limited (now known as CSL IT Services ULC; collectively, Safeway or the Company) Under Review with Negative Implications, following the Company’s announcement that it is in discussion concerning a possible transaction involving the sale of the Company.

The placement of Under Review with Negative Implications reflects uncertainty surrounding a possible transaction involving the sale of the Company and the likelihood that such a transaction would result in higher financial leverage.

In its review, DBRS will focus on (1) the final form of any transaction and the Company’s resultant business risk profile and financial risk profile, (2) Safeway’s ultimate ownership structure and corporate governance and (3) the Company’s longer-term business strategy and financial management intentions.

DBRS will proceed with its review as more information becomes available and aims to resolve the Under Review when a transaction is announced.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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