Press Release

Morningstar DBRS Assigns Credit Rating of BBB (high) with Stable Trend to Loblaw Companies Limited’s New Debt Issuance

March 04, 2024

DBRS Limited (Morningstar DBRS) assigned a credit rating of BBB (high) with a Stable trend to Loblaw Companies Limited’s (Loblaw or the Company; rated BBB (high) with a Stable trend by Morningstar DBRS) $400 million 5.115% Senior Unsecured Notes (the Notes) due March 4, 2054, which closed on March 4, 2024.

The credit rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

The Company intends to use the net proceeds of the Notes to partially fund the repayment of its outstanding $400 million aggregate principal amount of the 3.918% senior unsecured notes maturing June 10, 2024, and for general corporate purposes. The Notes are unsecured and rank equally with all existing and future unsecured and unsubordinated indebtedness of Loblaw.

Loblaw’s credit rating continues to reflect the Company’s strong business risk profile, including its position as Canada’s largest food and drug retailer, and the intense competition in Canadian food retail.

There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (January 23, 2024) at

(A) Weighting of BRA Factors
In the analysis of Loblaw, the relative weighting of the BRA factors was approximately equal.

(B) Weighting of FRA Factors
In the analysis of (insert issuer name), the relative weighting of the FRA factors was approximately equal.

(C) Weighting of the BRA and the FRA
In the analysis of (insert issuer name), the BRA carries greater weight than the FRA.

All figures are in Canadian dollars unless otherwise noted.

Morningstar DBRS applied the following principal methodologies:
-- Global Methodology for Rating Companies in the Merchandising Industry (July 21, 2023),
-- DBRS Morningstar Global Criteria: Preferred Share and Hybrid Criteria for Corporate Issuers (October 19, 2023),

The credit rating methodologies used in the analysis of this transaction can be found at:

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at:

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS trends and credit ratings are under regular surveillance.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on or contact us at [email protected].

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