Status as a leading hard-goods store with a nationally recognized name Resilience in operating performance despite difficult economic and competitive conditions Strong credit operation through Canadian Tire Financial Services with two distinct credit cards Stable debt and interest coverages on improving trends Sites that are mostly owned, not leased, and large unencumbered real estate holdings Still-low profitability as return on permanent capital still weak A CustomerLink supply chain initiative with un undefined payback The ratings reflect Canadian Tire Corp. Ltd.'s leading position in Canadian hard-goods retailing, a credit card operation that is a significant contributor to operating income, resilient earnings in the context of a very difficult economic and competitive environment, and improving credit protection measures and substantial liquidity in
