The stable outlook on CTC reflects S&P Global Ratings' expectation of growth of private brands with differentiated offerings for Canadian customers in the short term and global growth of CTC's portfolio of owned brands in the long term. We expect adjusted debt-to-EBITDA would be in the mid-high 2x area and funds from operations (FFO)-to-debt will be about 25%-30% over the next couple of years. The outlook also incorporates our expectation that the company would continue to generate positive SSS growth and stable adjusted EBITDA margins. We could lower our ratings in the next couple of years if we expect CTC to sustain adjusted debt-to-EBITDA above 2.5x, absent any improving trend, or if CTC business prospects deteriorate in our view. This
