Canada's largest hardware-goods retailer Operating earnings resiliency Profitable credit card operation Stable capital structure and healthy liquidity position Profitability measures only average for ratings category Margin expansion remains problematic Petroleum earnings very volatile The ratings on Canadian Tire Corp. Ltd. reflect the Toronto, Ont.-based company's leading position as Canada's largest hardware-goods retailer. Further supporting the ratings are the company's resilient earnings in the past several years, despite numerous competitive threats and unforeseen events, and a credit card operation that contributes significantly to operating income and is likely to further benefit from Canadian Tire Bank--the company's new banking arm, with a healthy liquidity position. These factors are offset by profitability measures that are average for the ratings category; operating margins that
