DBRS Upgrades Ratings on Sobeys Inc. to BBB (low) and Changes Trend to Stable; S&P Revises Outlook to Positive

STELLARTON, NS, July 5, 2019 /CNW/ - Empire Company Limited ("Empire" or the "Company") (TSX: EMP.A) announced today that Dominion Bond Rating Service ("DBRS") has upgraded the Issuer Rating and Senior Unsecured Debt rating of Sobeys Inc. ("Sobeys") to BBB (low) from BB (high), and also changed the trends for Sobeys to Stable from Positive. DBRS stated in its press release announcing the upgrade, "The rating actions reflect the Company's very strong operating performance in Q4 F2019, well above DBRS's forecast, and the expectation that this recovery is sustainable going forward."

The Company also announced today that Standard & Poor's ("S&P") has revised the outlook for Sobeys to Positive from Stable, on improving operations. S&P stated, "The positive outlook on Sobeys reflects our increased confidence that the company will increase EBITDA as it continues to execute Project Sunrise while also integrating Farm Boy and expanding its discount store footprint." S&P did not revise its credit rating for Sobeys, which remains at BB+. S&P noted that Sobeys could be upgraded within the next 12 months if certain conditions are met.

ABOUT EMPIRE

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire's key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $25.1 billion in annual sales and $9.6 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 123,000 people.

SOURCE Empire Company Limited