Canada's largest hard goods retailer with a strong branding and loyalty program Resilient operating margins despite soft revenues in difficult market conditions Financial services operations provide operating and funding diversification Ample financial flexibility Negative same-store sales at Canadian Tire dealerships, the company's core franchise Rising default rates on the credit card portfolio is weakening EBITDA generation Challenging market environment, with weak consumer demand and 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, 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
