Safeway 2008 Annual Report Download - page 52

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SAFEWAY INC. AND SUBSIDIARIES
Stock Repurchase Program From the initiation of the Company’s stock repurchase program in 1999 through the end
of fiscal 2008, the aggregate cost of shares of common stock repurchased by the Company, including commissions, was
approximately $3.8 billion, leaving an authorized amount for repurchases of approximately $1.2 billion. This includes an
increase in the total authorized level of the repurchase program by $1.0 billion to $5.0 billion approved by the Board of
Directors in May 2008. During fiscal 2008, Safeway repurchased approximately 12.6 million shares of its common stock
under the repurchase program at an aggregate price, including commissions, of $359.5 million. The average price per
share, excluding commissions, was $28.45. The Company will evaluate the timing and volume of future repurchases
based on several factors, including market conditions, and may repurchase stock in the near- or long-term as
circumstances warrant.
Credit Ratings The senior long-term and short-term debt ratings and outlooks currently assigned to unsecured Safeway
public debt securities by the rating agencies are as follows:
Senior
Long-Term Short-Term Outlook
Fitch Ratings BBB F2 Stable
Moody’s Investors Services Baa2 P-2 Stable
Standard & Poor’s BBB A-2 Stable
Safeway’s ability to borrow under the Credit Agreement is not affected by Safeway’s credit ratings. Also, the Company
maintains no debt which requires accelerated repayment based on the lowering of credit ratings. Pricing under the Credit
Agreement is generally determined by the better of Safeway’s interest coverage ratio or credit ratings. Negative changes
in the Company’s credit ratings may have an adverse impact on financing costs and structure in future periods, such as
the ability to participate in the commercial paper market and higher interest costs on future financings. Additionally, if
Safeway does not maintain the financial covenants in its Credit Agreement, its ability to borrow under the Credit
Agreement would be impaired. Investors should note that a credit rating is not a recommendation to buy, sell or hold
securities and may be subject to withdrawal by the rating agency. Each credit rating should be evaluated independently.
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