S&P rates Sobeys notes 3

Standard & Poor's said it assigned recovery ratings of 3 to Sobeys Inc.'s C$400 million unsecured notes issued in three tranches. The issue-level rating on Sobeys' unsecured medium-term notes remains BB+, which is the same as the corporate credit rating.

The outlook is negative.

The agency said the ratings on Sobeys reflect its weak credit protection measures, a heavy capital expenditures program and a very competitive operating environment.

They ratings are supported by the company's No. 2 national market share position and resilient same-store sales performance, S&P added.

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