Canada's largest hard goods retailer with strong branding and loyalty program Relatively stable operating margin despite difficult market conditions Ample financial flexibility Financial services operation provides diversification Soft same-store sales at Canadian Tire dealerships, the company's core franchise Challenging market environment, with very competitive general merchandise marketplace and weak consumer demand Uncertainty surrounding the financing structure for the portfolio of credit card receivables The ratings on Toronto-based Canadian Tire Corp. Ltd. reflect the company's leading position as the country's largest hard goods retailer, established through strong branding and extensive market coverage. The ratings are further supported by what Standard&Poor's Ratings Services views as the company's resilient earnings in challenging market conditions compared with Canadian Tire's peers, in addition
