S&P: Canada Safeway notes BBB

Standard & Poor's said it assigned BBB ratings to Canada Safeway Ltd.'s C$300 million private placement notes due 2014.

The notes are guaranteed by the parent, Safeway Inc.

The proceeds will be used for general corporate purposes.

The ratings are supported by its satisfactory business risk profile, based on an expectation that the company will maintain its strong market position as one of the largest conventional supermarket operators in the United States, S&P said.

The agency said it characterizes the company's financial risk profile as intermediate, reflecting its ability to generate solid free cash flow irrespective of recent profitability pressures.

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