Press Release

DBRS Morningstar Assigns Rating of BBB, Positive Trend, to Loblaw’s New Debt Issuance

May 07, 2020

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Positive trend to Loblaw Companies Limited’s (Loblaw or the Company; rated BBB with a Positive trend by DBRS Morningstar) $350 million, 2.284% Senior Unsecured Notes (the Notes) due May 7, 2030, which closed on May 7, 2020. The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Notes are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of the Company. Loblaw intends to use the net proceeds from the Notes to partially fund the repayment of its outstanding $350 million aggregate principal amount of 5.22% Medium Term Notes, Series 2-B maturing June 18, 2020, and for general corporate purposes.

Loblaw’s ratings reflect the Company’s strong business risk profile, including its position as Canada’s largest food and drug retailer. The ratings also consider the intense competition in Canadian food retail and risks associated with drug pricing and pharmacy reforms.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at:

All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Merchandising Industry (August 15, 2019), DBRS Morningstar Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (November 1, 2019), and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019), which can be found on under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:

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