DBRS: Safeway outlook stable

DBRS said it revised the trend on Safeway Inc.'s BBB rated senior unsecured debt to stable from positive. Its commercial paper ratings, including that of wholly owned subsidiary Canada Safeway Ltd., are unchanged at R-2 (high) with stable trends.

The trend change reflects DBRS' view that Safeway's operating performance will no longer support an upgrade of the rating in the near term due to weaker-than-expected year-to-date results and a significant reduction in 2009 earnings guidance, the agency said.

Over the longer term, DBRS believes Safeway's position as the fourth-largest food retailer in the United States and its geographically diversified store base will keep the company well positioned relative to its peers.

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