On July 16, 2002, Standard&Poor's affirmed its ratings on retailer Canadian Tire Corp. Ltd., including the triple-'B'-plus long-term corporate credit and senior unsecured debt ratings. The outlook is stable. The ratings reflect the Toronto, Ont.-based company's leading position in Canadian hard-goods retailing, a credit card operation that is a significant contributor to operating income, resilient earnings in the context of a very difficult economic and competitive environment, and improving credit protection measures and substantial liquidity in light of recent asset monetizations. These factors are offset by profitability that remains quite low for the rating category, leverage that still reflects the company's heavy capital program, and an ambitious supply-chain program with an undefined payback. Canadian Tire is one of
