Sobeys Inc.: Rating Report

On May 29, 2023, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Unsecured Debt rating of Sobeys Inc. (Sobeys or the Company) at BBB with Stable trends. The rating confirmations and Stable trends reflect DBRS Morningstar’s view that Sobeys, given the relatively inelastic nature of the Company's product offering, will be able to navigate the current environment of persistent inflationary pressures and consumers' decreasing purchasing power within the context of the BBB rating category. Sobeys’ ratings continue to be supported by its number two position in the Canadian food retailing market and its diversification across the country, balanced by the intensely competitive environment.