DBRS is a large bond-rating agency in Canada.
Access the agency’s website at www.dbrs.com and answer the following.
(a) How does DBRS rate the debt of food retailer companies? In other words, what is its methodology? List the factors considered in assessing the general business risk profile, the general financial risk profile (specific ratios considered), and industry-specific factors.
(b) What ratings has DBRS given to Loblaw Companies Limited and Empire Company Limited?
(c) Comment on why the ratings in (c) might have been given.
(d) Is it possible to have different ratings on different debt instruments in the same company? Explain.