Canada's largest hard goods retailer Resilient earnings and revenue growth Stable capital structure and ample financial flexibility Growing financial services operation provides diversification Profitability measures are below its peer group Elevated capital expenditure program Very competitive general merchandise marketplace The ratings on Toronto-based Canadian Tire Corp. Ltd. reflect the company's leading position as the country's largest hard goods retailer, specializing in the home, leisure, and automotive categories. The ratings are further supported by the company's resilient earnings and solid same-store sales growth in the past several years, a stable capital structure, and ample financial flexibility, in addition to a well-managed financial services operation that contributes significantly to operating income. These factors are partially offset by profitability measures that are below
