A loan syndicate led by Canadian Imperial Bank of Commerce is taking some unexpected good news to potential investors this week: Moody's Investors Service assigned high ratings to a $1.1 billion loan to finance a buyout of Shoppers Drug Mart.

The loan, which will finance Kohlberg Kravis Roberts & Co.'s buyout of Shoppers, had been pegged by bankers as a potential flop, not because of the deal's shaky structure - the loan is secured by company stock rather then tangible assets such as real estate or inventory - but because the loan lacked what bankers call the "greed factor," or fat returns.

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