The company is Canada's largest hardware goods' retailer. Canadian Tire has a widely accepted loyalty program. The company has generated resilient operating earnings in the past two years despite difficult economic and competitive conditions. Canadian Tire's credit card operation has always been profitable and will benefit from recently approved bank designation. The company has strong liquidity in addition to a large unencumbered real estate portfolio. The company's profitability measures remain relatively weak. Canadian Tire has been unable to grow margins meaningfully, despite numerous cost-cutting initiatives. The ratings on Canadian Tire Corp. reflect the Toronto, Ont.-based company's leading position in Canadian hard-goods retailing, resilient earnings in the context of a very difficult economic and competitive environment, a credit card operation that
