S&P cuts George Weston

S&P said it lowered its issue-level ratings on George Weston Ltd.’s unsecured debt to BBB- from BBB. The BBB issuer credit rating on the company is unchanged.

The outlook is stable.

In December, George Weston completed the sale of Weston Foods for C$1.47 billion.

With the Weston Foods sale, S&P said it now views George Weston as a holding company with no direct operating cash flow or operating assets to mitigate the structural subordination risk of the unsecured debt at George Weston.

The stable outlook on George Weston reflects S&P Global Ratings' expectation that George Weston's consolidated adjusted debt-to-EBITDA ratio will be below the 3x area through 2022.

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