MIRA INFORM REPORT

Report Date :

12.04.2011

IDENTIFICATION DETAILS

Name :	LOBLAWS, INC.

Registered Office :	1 Presidents Choice Cir, Brampton, ON, L6Y 5S5

Country :	Canada

Year of Establishment :	1919

Legal Form :	Corporation for Profit

Line of Business :	Supermarkets

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	2,000,000 USD

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Canada

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - CANADA

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: CAD

Branch Situation: Stable

IDENTIFICATION

Ordered as:	Loblaws Inc
Address in the order:	1 President's Choice Circle, Brampton, Ontario L6Y 5S5, Canada, Canada

Legal Name:	Loblaws, Inc.

Legal Address	1 Presidents Choice Cir Brampton, ON L6Y 5S5, Canada

Telephone:	+ 1 (905) 459-2500	Document Number :	NA
Fax:	+ 1 (905) 861-2206	Legal Form:	Corporation for Profit
Email:	NA	Registered in:	Ontario
Website:	www.loblaws.ca	Date Created:	1919
Manager:	Galen Weston , President	Date Incorporated:	NA
Staff:	126,000 employees	Stock:	NA
		Value:	NA
Activity:	Supermarkets

BANKS

Name of the Bank

RBC; CIBC

BUSINESS

HISTORY
	Key developments for Loblaws, Inc. UFCW Canada Sets Strike Deadline at Loblaw Companies Limited Grocery Stores if No Settlement Reached by Early October 09/11/2010 Loblaws and Union Go to Conciliation 05/10/2010 Representatives of United Food and Commercial Workers Local 175 and Loblaws are headed to conciliation next month in an attempt to reach a new collective agreement. Talks broke off last week after the two sides failed to reach agreement on main issues including wages, benefits and scheduling. Loblaws, Inc. Announces Break-Off of Talks for 30,000 Grocery Workers in the Province of Ontario 05/4/2010 Loblaws, Inc. announced that negotiations between the Union and the company came to a halt for 30,000 members working at Loblaws, Zehrs, Great Food Store, Real Canadian Superstore and Fortinos across Ontario. Fifty-six members from United Food & Commercial Workers (UFCW) Locals 175, 633, 1000A and 1977 make up the negotiating committee. The four Locals have upheld a solidarity pact, which was introduced at the commencement of previous negotiations in 2005, which lead to a successful outcome. ORMI Signs Agreement with Loblaws Inc 04/28/2009 Organic Resource Management Inc. announced the signing of an agreement with Loblaws Inc. a wholly-owned subsidiary of Loblaw Companies Limited, that will see food residuals from certain Loblaw stores converted into Biogas renewable energy through ORMI's From Leftovers to Lights(R) program. The From Leftovers to Lights(R) campaign is a promotional program that allows ORMI's customers to gain recognition for their organic residual diversion and green-energy contributions. Under the agreement Loblaw will have exclusive rights to divert its food residuals to ORMI's Anaerobic Digesters as long as Loblaw can fill ORMI's AD capacity. ORMI will have the exclusive right to provide all grease interceptor pump-out services to all Loblaw stores in Ontario, and British Columbia. ORMI's From Leftovers to Lights(R) program utilizes ORMI's patented Organic Resource Recovery System to liquefy food residuals into a slurry. The organic slurry is then collected by the Company's vacuum trucks along with the grease interceptor residuals to be processed into AD feedstock at the Company's transfer stations and delivered to ADs under the Company's exclusive long-term AD Feedstock Supply Agreements.
PRINCIPAL ACTIVITY
	Loblaws, Inc. operates supermarkets in Canada. Its stores offer jewelry, beauty products, foods, PC home products, dry cleaners, gift cards, and natural health products, as well as a photo studio, a salad and sushi bar, an in store printing/photo lab, and a bakery. The company also offers products online. Loblaws, Inc. was founded as Loblaw Groceterias Co., Ltd. in 1919 and changed its name to Loblaws, Inc. The company is based in Toronto, Canada. Loblaws, Inc. operates as a subsidiary of Loblaw Companies Limited. We called the company. The staff confirmed the headquarters address.
Sales are:
	Retail
Operations area:
	National, International
Trade References:
	ORMI

Shareholders - Manager - Related Companies

Shareholders Parent Company(ies):
	1 Presidents Choice Circle Brampton, ON L6Y 5S5 Canada L6Y 5S5 138,000 employees Currency DATE CAD 2009 Turnover 30,735,000,000
Management:
	GALEN WESTON, President DAVID K BRAGG, Executive Vice President, DONALD REID, Senior Vice President.
Related Companies:
	Atlantic Wholesalers Ltd. Loblaws Supermarkets Ltd. Zehrmart Limited Fortinos Supermarket Limited Loblaw Properties Ltd Provigo Distribution Inc Provigo Inc. President’s Choice Bank Loblaws Financial Holdings Inc. Provigo Properties Limited Loblaw Properties West Inc.

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

However our financial sources could provide us with the following data (estimates exceptionally provided in USD by our source):

Currency	DATE
USD	2009
Turnover	24,087,650,000

Legal Fillings

The sources consulted record detrimental legal or labor information.

UFCW Canada Sets Strike Deadline at Loblaw Companies Limited Grocery Stores if No Settlement Reached by Early October

09/11/2010

Four days of talks between UFCW Canada and Loblaw Companies Limited wound up on Sept. 11, 201 with some progress on key issues but no settlement in the prolonged negotiations that have been underway since April. UFCW local unions 1977, 1000A and 175 & 633 say there are major issues that need to be resolved if a strike is to be avoided. The union's bargaining committee set a strike deadline of 12:01 a.m., October 8, if no agreement is reached and ratified by the membership at Loblaws, Zehrs, Real Canadian Superstores and Great Food stores, all subsidiaries of Loblaw Companies Limited. Further meetings between the union and the company have been scheduled for the week beginning September 27 through to October 2nd.

Rating

Local credit bureau gave a good credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

This company has been incorporated for several years.

This is a large size business with international networks.

The subject’s parent company is doing well.

The business is definitely profitable.

The subject inspires confidence.

A business connection can be conducted.

It is important to notice that the subject has been looking for a credit line from several financial institutions.

A follow up is needed on the conciliation with the Union.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	GOOD	Public	YES
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

ADVISED CREDIT

2,000,000 USD

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.22
UK Pound	1	Rs.72.26
Euro	1	Rs.63.90

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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