Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio - S&P Global Ratings’ Credit Research

Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio

Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio - S&P Global Ratings’ Credit Research
Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio
Published Aug 08, 2019
2 pages (972 words) — Published Aug 08, 2019
Price Free  |  Buy this Report Now

About This Report

  
Abstract:

TORONTO (S&P Global Ratings) Aug. 8, 2019--S&P Global Ratings today said that Canadian Tire Corp. (CTC; BBB+/Stable/A-2) will acquire Party City's Canadian business for about C$175 million, allowing CTC to not only strengthen its owned brand portfolio but also to expand into a new high-growth product category. Although the company plans to finance the acquisition with debt, we expect management to take appropriate steps to bring down leverage (S&P Global Ratings-adjusted) to about 2.5x by year-end 2020. Based on the acquisition size and management's focus on reducing leverage, our ratings and outlook on CTC are not affected.

  
Report Type:

Bulletin

Ticker
CTR@CN
Issuer
Canadian Tire Corp. Ltd.
GICS
General Merchandise Stores (25503020)
Sector
Global Issuers, Structured Finance
Country
Canada
Region
Canada
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio" Aug 08, 2019. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Canadian-Tire-Corp-Ltd-s-Acquisition-Of-Party-City-s-Canadian-Business-Strengthens-Brand-Portfolio-2279469>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Canadian Tire Corp. Ltd.'s Acquisition Of Party City's Canadian Business Strengthens Brand Portfolio Aug 08, 2019. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Canadian-Tire-Corp-Ltd-s-Acquisition-Of-Party-City-s-Canadian-Business-Strengthens-Brand-Portfolio-2279469>
  
Free
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Residential Mortgage-Backed Securities from one place.