We are affirming our 'BBB+' long-term corporate credit rating on Canadian Tire Corp. Ltd. following the company's proposed C$771 million acquisition of The Forzani Group Ltd. We view the acquisition and financing as consistent with our existing rating and outlook on Canadian Tire. We believe this transaction supports Canadian Tire's business risk profile by adding an established retail platform, with only a modest and short-lived increase in financial risk. The stable outlook reflects our expectation that the company's steady operating performance and lower capital expenditures in 2011 will enable it to reduce debt and return leverage to the 2.5x-3.0x range within 18-24 months. TORONTO (Standard&Poor's) May 9, 2011--Standard&Poor's Ratings Services today said it affirmed its 'BBB+'
