TORONTO (Standard&Poor's) Dec. 19, 2001--Standard&Poor's today affirmed its triple-'B'-plus corporate credit and senior unsecured debt ratings on Canadian Tire Corp. Ltd. In addition, the 'A-1(Low)' Canadian national scale commercial paper rating on the company was affirmed. The outlook is stable. The ratings affirmation follows Canadian Tire's announcement that it will acquire Mark's Work Wearhouse Ltd. for C$116 million. The rating action reflects the relatively small scale of the acquisition, Canadian Tire's healthy operating results thus far in 2001 and its stable capital structure, and the overall commonality in customer base between the two companies. These factors are offset by relatively high operating lease commitments at Mark's Work Wearhouse and Canadian Tire's inexperience in the apparel sector.
