Moody's raises Jean Coutu to SGL-3

Moody's Investors Service said it raised the speculative grade liquidity rating of The Jean Coutu Group, Inc. to SGL-3 from SGL-4.

This is prompted by Moody's opinion that operating cash flow and cash balances are adequate to service the company's minimal obligations over the next 12 months, given that capital investment has decelerated, as well as the increased compliance cushion with bank loan covenants following the March 2006 amendment.

Negatively affecting Jean Coutu's liquidity position is the limited availability of alternate liquidity given the use of all assets to secure the bank loan, Moody's said.

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